INVESTMENT SUMMARY

• New Tesco Express store with refurbished 3 bed fl at at fi rst fl oor.

• 430.98 sq.m (4,639 sqft) unit on ground and basement.

• New 20 year lease to Tesco Stores Limited (tenant break at year 10).

• Total income of £56,700 per annum.

• Tesco lease with 5 yearly rent reviews to RPI (collar of 1% and cap of 4%) per annum compounded.

• Undoubted 5A1 covenant to ground and basement - 6 month rental guarantee on the fl at.

• Proposal - £840,000 representing a net initial yield of 6.38%, after purchaser’s costs of 5.80%.

TESCO EXPRESS INVESTMENT

Former Fox & Goose, 142 Bromley Lane,Kingswinford, West Midlands DY6 8QE.

CONTACTSFor further information or if you wish to arrange an inspection please contact:

Andrew PriceDD: 0121 513 0892M: 07798 656 360andrew.price@fspproperty.co.uk

Andrew Franck-SteierDD: 0121 513 0891M: 07798 647 640andrew.franck-steier@fspproperty.co.uk

LOCATION Kingswinford is a prosperous town situated in the West Midlands and is located approximately 5 miles (8 km) to the south west of Dudley town centre, 3 miles (5 km) north of Stourbridge, 6 miles (10 km) south of Wolverhampton and approximately 10 miles (16 km) to the west of Birmingham.

SITUATIONThe subject property lies in a prominent position on the southern side of Bromley Lane, a major neighbourhood route running east / west off the A491. The property lies opposite Crestwood School, a large secondary school and is surrounded by high density residential.

DEVELOPMENTThe property will comprise a comprehensively refurbished former public house which will provide a Tesco Express unit totalling 430.98 sq.m (4,639 sqft) over ground and basement. The ground fl oor retail area will be 337.70 sq.m (3,635 sqft) and basement 93.27 sq.m (1,004 sq.ft). The fi rst fl oor will comprise a refurbished three bedroom fl at with separate access and a self contained garden to the side of the property.

The site extends to 0.59 acres (0.24 hectares, edged red on the site plan) and will provide 24 car spaces including four disabled spaces. Planning for the development was granted on 29th March 2012 and Practical Completion of the development is anticipated to be mid September 2012. The land edged blue on the site plan is to be sold separately for residential development and does not form part of the sale.

TENANCYTesco Stores Limited has signed an Agreement for Lease and on Practical Completion of the ground and basement they will commit to a new 20 year FRI lease. There is a tenant only break option on expiry of the 10th year of the lease, subject to six months notice.

The initial rent will be £51,000 per annum (£10.99 per sqft). The rent will be increased 5 yearly on a compounded RPI basis. There will be a minimum collar to the reviews of 1% and a cap of 4% per annum. The vendor will cover any outstanding rent free on completion of the sale, the tenant has been granted three months at the outset.

*Based on conservative assumed RPI growth over the term of the lease the rent would increase to if RPI averaged out at 3% per annum:

Year 6 -10 - £59,123*Year 11-15 - £68,540*

Due to the refurbishment of the fl at the sale will be with the benefi t of a six month rental guarantee from the date of completion on the basis of a conservative rent of £475 per calendar month. This would equate to an annual rent of £5,700 per annum.

On the basis of the above, the combined commencing rent will be £56,700 per annum exclusive.

Misrepresentation Clause: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein are not guaranteed and are for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves of their accuracy. Neither Franck-Steier Price Ltd nor any of their employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Prices and rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfi lling its intended function.

TENUREFreehold.

COVENANTTesco trades from approximately 2,200 stores and for the year ended February 2011 reported a turnover of £40.1 billion, pre-tax profi ts of £2.2 billion and total assets of £17.8 billion

PROPOSALWe are instructed to seek offers in excess of £840,000 (Eight Hundred and Forty Thousand Pounds) which refl ects a net initial yield of 6.38%, based on purchaser’s costs of 5.80%.

Assuming RPI growth of 3.0% per annum on the Tesco element, the return to an investor during the lease could increase to:

Years 6 -10 - 7.29% Years 11-15 - 8.35%

VATThe property has been elected for VAT however it is envisaged that the transaction will be treated as a TOGC.

EPCFull information can be provided on request.