61/96c Queensmead, Farnborough

South-East Town Centre, Retail and Residential Investment Opportunity

Victoria Road

to Farnborough Station

to Farnborough IQ

to Farnborough Airport

to Farnborough College

Kingsmead Shopping

Centre

Vue Cinema

Debenhams

Sports Centre

Asda

Princesmead Shopping Centre

The Meads Sainsburys

Travelodge

to Solartron Retail Park

Queensmead

Iceland

B&Q

Kingsmead Multi-Storey Car

Park

Argos

Wilkinson

Investment Summary• A rare opportunity to acquire a major portion of a south-

east town centre and specifically control three unbroken retail parades (and associated residential upper parts) in a strategically located, retailing destination.

• Affluent catchment population with over-representation of social group AB & C1.

• An extensive integral town centre site extending to circa 1.43 acres and comprising 30 retail units and 30 flats.

• A strong tenant mix with over 75% of the income secured on national multiple covenants including Poundland, Ryman, Peacocks, Boots Opticians, Halifax, Card Factory, Shoe Zone, Greggs, Bonmarché, Store 21, Lloyds Bank, Coral, British Heart Foundation and Marie Curie Cancer Care.

• 100% occupancy rate on retail units. 95.2% occupancy rate (on gross rent received) on residential units with 12 months’ rent and rates guarantee from vendor on existing residential vacancies.

• Average Weighted Unexpired Lease Term (AWULT) of 6.34 years.

• Predominantly Freehold.

• Low rental tone - an affordable base for future rental growth.

• Queensmead has benefited from significant recent local authority investment to the public realm with new paving, seating, lighting and landscaping.

• Improving retail and leisure destination with the opening of Vue Cinema and a number of A3 units in the adjacent Kingsmead Shopping Centre scheduled for the end of 2014.

• Numerous commercial asset management opportunities and the potential to increase the capital/ rental value of the residential accommodation through refurbishment.

• £17,960,000 subject to contract and exclusive of VAT reflecting an attractive net initial yield of 7% allowing for purchase costs of 5.8%.

Farnborough• BusinessFarnborough is synonymous with British Aviation. The week long, bi-annual Farnborough International Air Show receives phenomenal trade and public support with over 209,000 visitors attending in 2012. BAE Systems are represented in the town. Farnborough is also home to a variety of high tech businesses, including QinetiQ and Fluor. To compliment this rich heritage, there has been significant investment in the Farnborough business space market. Farnborough Technology and Innovation Centre acts as a base for a number of major companies and provides a sophisticated research facility, while IQ Farnborough is one of the premier business locations in the region, located on the edge of the town centre and includes tenants such as Augusta Westland, Autodesk, BMW and Costco. Farnborough College of Technology supports the local industries, helping to ensure a high skills base in the area and recently opened a new Aerospace and Automotive Academy on campus.

• DemographicFarnborough has a strong socio-economic profile, with the AB grouping representing 32% of the population compared with the 24% national average. The proportion of the local population owning their own home stands at 77% compared with the national average of 67%. The strength of the local economy is underpinned by the number of global companies that have UK Headquarters in the town and ultimately by the town’s infrastructure and proximity to London and other major conurbations.

LocationFarnborough is strategically located in the Blackwater Valley, Hampshire, approximately 56km (35 miles) south west of Central London. Neighbouring towns include Bracknell, Camberley, Farnham and Guildford.

The town benefits from excellent transportation links and is adjacent to the A331 Blackwater Valley relief road, close to Junction 4 and 4a of the M3 Motorway and a few miles north of both the A31 and A3 trunk roads. The M25 (Junction 12)

is 24km (15 miles) to the east affording direct access to both Heathrow 37km (23 miles) and Gatwick 58km (36 miles) Airports. Farnborough also has its own international airport largely used by private jets.

Farnborough benefits from two rail stations; Farnborough and Farnborough North which provide regular direct services to London (Waterloo) with a journey time of approximately 40 minutes.

FarnboroughQueensmead

Retailing in FarnboroughFarnborough has a primary catchment of 73,000 people and a shopping population of 43,000 which is above the average for similar sized towns. The town centre offers a comprehensive retail offer, focussed on three complimentary areas; Kingsmead Shopping Centre, Princesmead Shopping Centre, and Queensmead/The Meads. Phase One of ‘The Meads’ development, provides circa 183,000 sq ft of retail and leisure accommodation including a 60,000 sq ft Sainsbury’s food store. With further phases planned ‘The Meads’ is an £80m joint venture regeneration project between St. Modwen Plc, the UK’s leading regeneration specialst, and Salhia.

Kingsmead Shopping Centre is undergoing a major transformation with Vue Cinemas opening at the end of 2014 and discussions taking place with a number of restaurant and complimentary leisure users. The likely increased footfall will benefit Queensmead and extend the dwell time in the town centre.

QueensmeadQueensmead is an integral part of Farnborough’s retail offer providing an eclectic mix of national and local retailers and the pedestrianised link between the town’s two shopping centres, Princesmead and Kingsmead.

The property effectively encompasses a whole retailing thoroughfare in three ‘unbroken’ retail parades comprising 30 unit shops (including 32 Victoria Road) at ground floor level (and part first in some units) and 30 flats predominantly let on AST’s. Two of flats at 78/80 Queensmead are within the Halifax demise.

Queensmead has benefited from significant recent investment. Rushmoor Borough Council, last year undertook works to improve the public realm including the replacement of street

furniture and lighting while the whole street has also been landscaped making a more pleasant retailing environment.

Not in the ownership

32 Victoria Road- Long Leasehold Not in the ownership

UNDER OFFER

UNDER

OFFER

NEW RESTAURANT SPACE

NEW RESTAURANT SPACE

NEW RESTAURANT SPACE

VUE CINEMA

This Goad Plan is for identification only and not to be scaled as working drawing. No part of this plan may be entered into an electronic retrieval system without prior consent of the publisher. © Crown copyright 2010. Licence number PU100017316. For full terms and of copyright conditions visit www.goadplans.co.uk/copyright

AccommodationThe property provides a total approximate combined NIA/GIA of of 8,069.2 m² (86,856 sq ft) as set out in the Schedule of Tenancies and Accommodation.

TenureThe majority is held Freehold excluding:

96, 96a, 96b & 96c (Dukes Court) - To be held Long Leasehold from Key Property Investments (Number One) Ltd on a new 125 year lease from the date of completion of sale, at a peppercorn rental. There may be an option to buy the freehold at a future date and price to be agreed.

32 Victoria Road is held Long Leasehold for 125 years from Key Property Investments (Number One) Ltd from 16/12/2009 at a peppercorn rental expiring on 15/12/2134. This comprises ground floor only with Travelodge above.

TenanciesThe centre is leased to a variety of national, regional and local retailers in accordance with the Schedule of Tenancies. Poundland, Ryman, Peacocks, Boots Opticians, Halifax, Card Factory, Shoe Zone, Greggs, Bonmarche, Store 21, Lloyds Bank, Coral, British Heart Foundation and Marie Curie Cancer Care are all represented.

Long Leasehold

Freehold

Income & Estmated Rental Value• IncomeThe total income (including vendor rental guarantees on the three vacant residential units and a 10% deduction for management) is £1,330,152 pa. The vendor will be responsible for any outstanding rent free periods on completion of the sale.

• Estimated Rental ValueOur combined estimate of rental value is £1,348,655 pa.

Our estimate of the total gross rental value for the retail element of the property is circa £1,121,855 pa. This is based on a low headline Zone A rate of £45-£40 which assumes recent evidence within the ownership. There is a strong argument for future rental growth off this affordable base. Our combined residential ERV of £226,800 is based on rental values between £10,200 - £4,800 dependent on the individual flat’s condition.

National Multiples

Occupiers75%

Local Occupiers

25%

Income/Tenant Covenant Analysis

VATThe property has been elected for VAT and any disposal will be by way of a Transfer of a Going Concern (TOGC)

ProposalWe have been instructed to seek offers of £17,960,000 (Seventeen Million Nine Hundred and Sixty Thousand Pounds), subject to contract and exclusive of VAT for the freehold interest reflecting a net initial yield of 7% allowing for purchaser’s costs of 5.8%.

Artist impression of Kingsmead re-development

Property Management• Management/Service Charge The property is currently managed by the vendor. No staff are

directly employed ‘on site’ therefore TUPE legislation will not apply. There is not a formal service charge in place for the freehold element however, each tenant is obliged within their lease to make a fair contribution to communal works as and when they are required.

There is a service charge element to the Long Leasehold section. The service charge budget to Sept 2014 is £16,638.83 pa, apportioned as follows:

Unit Tenant% Service

Charge SC Payable 2014Unit 96 Ramazan & Feyaz Cinar 28.45% £4,733.46

Unit 96A Sanjay Patel 28.51% £4,744.01 Unit 96B British Heart Foundation 24.28% £4,029.47 Unit 96C Marie Curie Cancer Care 18.76% £3,121.89

Total £16,628.83 32 Victoria Road

Papa Johns Total SC for 2014: £1,068.30

SC Cap at £936.57 therefore a LL shortfall

of £131.77

• Energy Performance Certificates A suite of EPCs are available on request.

• Residential Management The residential units are currently managed directly by the

vendor. We have allowed for a notional management charge of 10%.

Asset Management Opportunities/InitiativesQueensmead offers significant asset management/re-development potential.

• Pursue potential lease re-gears

• Opportunity to extract value by selling off individual blocks or units

• Potential reconfiguration / redevelopment of certain sections of the holding

• Add value to the residential units through refurbishment

Tenancy Schedule Retail Element

Unit No Occupier Trading As

Areas (ft2)

Current Rent pax

Passing Zone A ERV

ERV Zone A Lease Start Lease End Next RR

Options to Break

Unexpired Term (Yrs) CommentsITZA

GF Anc/Mezz GFS 1st

Total NIA Area

32 Victoria Road

Papa Johns (GB) Ltd Papa Johns 955 955 £18,500 n/a £18,500 n/a 26/05/2010 25/05/2025 26/05/2015 25/05/2020 (T)

10.92 Long Leasehold: 125 yrs from 16/12/2009 at P/C rent. TBO -6mths notice. Service charge 2014 - £1,068.3,. Cap at £936.57 (£131.77 LL Shortfall)

Unit 61 Poundland Limited Poundland 1,798 5,950 4,520 10,470 £127,500 £64.63 £92,200 £45.00 19/10/2009 18/10/2019 19/10/2014 5.31Unit 62 & 64

Shoe Zone Limited Shoe Zone 1,125 2,446 2,446 £42,500 £37.78 £50,600 £45.00 08/01/2010 07/01/2020 08/01/2015 5.53

Unit 63 Ryman Ltd Rymans 955 2,638 2,638 £45,000 £47.12 £43,000 £45.00 22/03/2014 22/03/2024 22/03/2019 22/03/2019 (T)

9.74 Re-gear under offer. Assumed terms. Flat retained by LL and lease inside L&T Act. 12 mths half rent from 26/03/2014

Unit 65, 67 & 69

Peacocks Stores Limited Peacocks 2,094 214 4,838 2,765 7,817 £95,380 £42.50 £95,380 £42.50 01/10/2009 30/09/2014 0.26 New 5 year lease agreed and in legals at the passing rent with 6 months rent-free agreed from 01/10/2014

Unit 66 Sportswift Limited Card Factory 681 1,779 1,779 £45,000 £66.08 £30,600 £45.00 22/09/2008 21/09/2018 4.24Unit 68 Greggs Plc Greggs 554 776 776 £40,000 £72.20 £24,900 £45.00 29/11/2004 28/11/2014 0.42 Ongoing discussions with Greggs agent in respect of an early lease renewal. Unit 70 Sidegreen Limited Rogers 596 995 995 £25,200 £42.28 £25,300 £42.50 01/12/2013 30/11/2023 01/12/2018 01/12/2019

(T)9.43 Renewal 2013. TBO subject to 6 mths notice

Unit 71 Fantaseyes Opticians Ltd Fantaseyes Opticians

498 679 679 £19,000 £42.50 £19,000 £42.50 29/09/2009 28/09/2014 0.25 New 10 year ex Act lease with a 5th year tenant only break has been agreed at the passing rent with two months rent-free and £3,000 capital contribution for roof repairs. 10% deduction for prominence commencing 29/09/2014.

Unit 72 Instant Cash Loans Limited

The Money Shop 586 970 970 £25,000 £42.66 £24,900 £42.50 28/04/2011 27/04/2021 28/04/2016 28/04/2016 (M)

6.84 Mutual Break Option in yr 5 subject to 6 month notice. 3 month break penalty.

Unit 73 Afjol Miah Newsagent 497 655 655 £18,000 £40.30 £17,900 £40.00 01/05/2012 30/04/2027 01/05/2017 01/05/2017 (T)

12.85 10% reduction for lack of prominence.

Unit 74 Rodericks Ltd Queensmead Dental Practice

677 1,702 1,702 £32,500 £48.01 £28,800 £42.50 08/07/2011 07/07/2026 08/07/2016 08/07/2016 (T)

12.03 TBO in yr 5 & 10 subject to 6 months notice. LL Break in yr 5 subject to 9 month break penalty. National Company with over 50 practices.

Unit 75 Mr Dave Nicolls Grin 'n' Bare it (Tattoos)

492 654 654 £14,000 £28.46 £19,700 £40.00 17/11/2013 16/11/2016 17/11/2014 (L)

2.39 Lease outside L&T Act. Rent deposit> LL rolling breaks.

Unit 76 Good Taste Coffee Limited

Good Taste Bakery

872 561 1,833 2,394 £40,000 £43.94 £39,000 £42.50 30/10/2009 29/10/2024 30/10/2014 29/10/2019 (T)

10.35 Jt Guarantors DJ Wilshire & DC Wilshire. TBO with £10k penalty.

Unit 77 Maria Carmen Jackson The Lemon Plaice 684 500 500 £14,000 £20.47 £27,400 £40.00 03/09/2012 02/09/2017 03/09/2015 3.18 Annual mutual break options subject to 3 months notice. Unit 78 & 80

Halifax Plc. Halifax 1,297 2,826 2,826 £58,500 £45.10 £68,600 £42.50 12/11/1996 24/12/2016 2.49 Outstanding 2011 rent review being negotiated. LL quoted Includes 2 flats (@ £800 pcm).

Unit 79 Jeanna Ganson McGhee Just Cuts 685 503 503 £28,000 £40.88 £27,400 £40.00 06/01/2010 05/01/2025 06/01/2015 10.53Unit 81 Anh Nguyet Hoang Nails & Beauty 495 665 665 £19,500 £39.39 £19,800 £40.00 01/04/2010 31/03/2020 01/04/2015 5.76Unit 82 & 84

Bonmarché Limited Bonmarché 1,372 149 3,434 3,160 6,743 £60,000 £37.65 £63,300 £40.00 25/03/2012 24/03/2017 2.74

Unit 83 Coral Racing Limited Coral 511 89 690 779 £20,800 £40.00 £20,800 £40.00 29/09/2011 28/09/2021 29/09/2016 29/09/2016 (T)

7.26 TBO subject to 6 mths notice

Unit 85 Nguyen Thuy Tuong Van Saigon Telephones

426 198 517 715 £18,000 £40.86 £17,700 £40.00 02/12/2009 01/12/2019 02/12/2014 5.43

Unit 86 Ilyas Coskun Cafe Deli 659 1,659 1,659 £29,100 £44.16 £26,400 £40.00 16/01/2001 15/01/2016 1.55Unit 87, 89 & 91

Boots Opticians Professional Services Ltd

Boots Opticians 1,512 2,059 2,059 £43,500 £32.00 £54,400 £40.00 24/06/2010 23/06/2020 24/06/2015 24/06/2015 (T)

5.99 10% discount F:D

Unit 88 & 90

Grabal Alok (UK) Limited Store 21 1,756 3,934 3,934 £80,000 £45.56 £70,200 £40.00 02/01/2013 01/01/2023 02/01/2018 02/01/2018 (T)

8.52 TBO in yr 5 subject to 6 months notice. 6 month rent penalty.

Unit 92 & 94

Lloyds TSB Bank Plc Lloyds Bank 1,241 185 2,401 2,586 £50,800 £40.49 £50,200 £40.00 21/07/2012 20/07/2022 21/07/2017 21/07/2017 (T)

8.07 5 car spaces @£400 per space: Discount 5% F:D

Unit 93 Patrick Paras Ram & Anita Devi Ram

Wimpy 619 818 818 £23,000 £37.16 £24,800 £40.00 11/11/2012 10/11/2022 11/11/2017 8.38 Rent increases to £24,800 in 2017.

Unit 96 Ramazan Cinar and Feyaz Cinar

Poppins 805 2,074 2,074 £32,200 £40.00 £32,200 £40.00 22/12/2003 21/12/2018 4.48 GF only - part of new long leasehold at P/C with option to acquire freehold. Service charge 28.45% (£4,733.46)

Unit 96A Sanjay Patel Farnborough Hardware

850 60 1,941 2,001 £23,000 £26.85 £34,200 £40.00 22/06/2013 21/06/2016 MBO Any Time 1.98 GF only - part of new long leasehold at P/C with option to acquire freehold. Service charge 28.51% (4,744.01). Rent rises to £24,000 in Year3. TBO - 12 mths notice /LBO 3 mths notice

Unit 96B British Heart Foundation British Heart Foundation

787 1,806 1,806 £31,275 £39.74 £31,275 £40.00 03/07/2014 02/07/2024 03/07/2019 03/07/2019(T)

10.01 GF only - part of new long leasehold at P/C with option to acquire freehold. Service Charge 24.28% (£4,039.47). Lease renewal recently completed. Tenant received 2 months rent free.

Unit 96C Marie Curie Cancer Care Marie Curie Cancer Care

585 1,382 1,382 £23,400 £40.00 £23,400 £40.00 06/01/2004 05/01/2014 -0.48 GF only - part of new long leasehold at P/C with option to acquire freehold. Service charge 18.76% (£3,121.89). Sols instructed. Terms have been agreed for a 10 year lease with a 5th year tenant only break at the passing rent, with 2 months rent-free. Marie Curie Cancer Care Board Approved.

65,980 £1,142,655.00 £1,121,855

LL Shortfall £131.77Net

Current Income

£1,142,523.23

WULT BY INCOME TO EXPIRY (Inc.Deals U/O) 6.34

Long Leasehold WULT BY INCOME TO TBO (Inc.Deals U/O) 4.16

Tenancy ScheduleResidential (Westmead & Eastmead)

Description Current Tenant Description GIA (m²) GIA (sqft) Condition Annual rent Rent PCM ERV Type Lease Start

Flat 1, Eastmead Mr AJ Taylor & Ms Tara Clarke 2 Beds, 1 Bath, CH 63.10 679 Fair/Average £7,800 £650 £9,000 AST 01/05/2014

Flat 3, Eastmead Narbahadue Biswakarma 2 Beds, 1 Bath, CH 63.10 679 Fair/Average £7,800 £650 £9,000 AST 24/09/2009

Flat 5, Eastmead Adam Wells & Steven Denver 2 Beds, 1 Bath, CH 63.10 679 Fair/Average £8,400 £700 £9,000 AST 22/04/2013

Flat 63 Eastmead Rental Guarantee 2 Beds, 1 Bath 82.60 889 Fair/Average £7,500 £625 £7,500 AST 1 year term

Flat 65a, Eastmead Rental Guarantee 2 Beds, 1 Bath, CH 69.20 745 Fair/Average £9,000 £750 £9,000 AST 1 year term

Flat 67a, Eastmead Peterson Kalunga & Sarah Scott 2 Beds, 1 Bath, CH 70.10 755 Above Average £9,000 £750 £10,200 AST 01/05/2012

Flat 69a, Eastmead Robert Benson & Vera Benson 2 Beds, 1 Bath, CH 71.20 766 Poor £4,800 £400 £4,800 AST 19/04/2009

Flat 75, Eastmead Mrs G Larmer 2 Beds, 1 Bath, CH 64.10 690 Poor £6,600 £550 £4,800 AST 09/01/2006

Flat 77b, Eastmead J A P Troles & M G A P Troles 2 Beds, 1 Bath, CH 64.10 690 Poor £7,320 £610 £4,800 AST 07/01/2011

Flat 79, Eastmead Mariegold Patlonag - Teves 2 Beds, 1 Bath, CH 63.00 678 Fair/Average £8,700 £725 £9,000 AST 03/06/2009

Flat 81, Eastmead M. Prunty & M. Eaton 2 Beds, 1 Bath 62.80 676 Fair/Average £2,340 £195 £7,500 Protected 18/01/1991

Flat 83, Eastmead Kajiman, Parbati & Sujana Bishwakarma 2 Beds, 1 Bath, CH 63.60 685 Fair/Average £8,700 £725 £9,000 AST 06/09/2012

Flat 85, Eastmead Peter Fleming, James Kinge & Amy Moran 2 Beds, 1 Bath, CH 64.10 690 Above Average £8,400 £700 £10,200 AST 01/02/2014

Flat 87, Eastmead Brajesh Singh Rana & Sadhana Rana 2 Beds, 1 Bath, CH 64.80 698 Poor £8,340 £695 £4,800 AST 25/08/2010

Flat 89, Eastmead Raj & Ronalie Gurung 2 Beds, 1 Bath, CH 64.00 689 Poor £8,700 £725 £4,800 AST 12/08/2011

Flat 91, Eastmead E. Barham 2 Beds, 1 Bath 64.10 690 Poor £1,920 £160 £4,800 Protected 01/08/1992

Flat 62, Westmead Ms Joanne Cullen 2 Beds, 1 Bath, CH 90.40 973 Fair/Average £9,120 £760 £9,000 AST 14/02/2009

Flat 66, Westmead Mr O Kilic & Mrs J Kilic 2 Beds, 1 Bath 64.40 693 Fair/Average £9,000 £750 £9,000 Protected 24/02/2014

Flat 68, Westmead Ms J Reid 2 Beds, 1 Bath, CH 63.80 687 Above Average £4,500 £375 £10,200 AST 01/01/2006

Flat 70, Westmead Rental Guarantee 2 Beds, 1 Bath 65.60 706 Poor £4,800 £400 £4,800 AST 1 year term

Flat 72, Westmead Leonard Bullock & Hollie Louise Watts 2 Beds, 1 Bath, CH 63.70 686 Fair/Average £8,700 £725 £9,000 AST 02/07/2011

Flat 74, Westmead Mr A Ganderton & Ms N Rothwell 2 Beds, 1 Bath, CH 65.50 705 Fair/Average £8,340 £695 £9,000 AST 01/05/2010

Flat 76, Westmead Helen Martin 2 Beds, 1 Bath, CH 90.48 974 Good £8,880 £740 £10,200 AST 27/02/2010

Flat 86, Westmead Sabindra Kumar & Tara Gurung 2 Beds, 1 Bath, CH 63.10 679 Fair/Average £8,340 £695 £9,000 AST 09/07/2012

Flat 88, Westmead Caroline Whitcombe 2 Beds, 1 Bath, CH 94.68 1,019 Fair/Average £9,600 £800 £9,000 AST 12/04/2013

Flat 90, Westmead Mr Daniel Kominowski 2 Beds, 1 Bath, CH 90.40 973 Above Average £10,200 £850 £10,200 AST 04/12/2013

Flat 92, Westmead Mr Ali, Miss Butkuviene & Mr Butkus 2 Beds, 1 Bath, CH 65.40 704 Above Average £8,400 £700 £10,200 AST 01/05/2013

Flat 94, Westmead Martin & Barbara Hartshorn 2 Beds, 1 Bath 64.90 699 Good £3,276 £273 £9,000 Protected 01/05/1987

Approximate Areas 1,939.36 20,876 £208,476 £226,800

Annual Rent Less Assumed 10% Management Charge £187,628

TOTAL NET RETAIL & RESIDENTIAL INCOME £1,330,152 £1,348,655

FURTHER INFORMATION

For further information please contact:

David Freeman James Baillie Ed Smith

020 7659 4830 020 7659 4839 020 7659 4831

david.freeman@greenpartners.co.uk james.baillie@greenpartners.co.uk ed.smith@greenpartners.co.uk

MISREPRESENTATION These particulars do not constitute an offer or contract. They are intended as a guide to prospective purchasers. All reasonable care has been taken in the preparation of these particulars but their accuracy is not guaranteed. The purchaser should satisfy himself and as to the correctness of these details. Neither the agents nor the vendors or lessors are to be or become under any liability or claim in respect of these particulars. These particulars are supplied on the understanding that all negotiations are conducted through this office. July 2014.Adrian Gates Photography & Design 07710 316991