TESCO STORES LTD, STENSON ROAD, SUNNYHILL, DERBY DE23 1HGFREEHOLD RETAIL INVESTMENT FOR SALE

Investment Summary

� Convenience store investment opportunity

� Freehold

� Prime location in densely populated residential suburb on outskirts of Derby

� Let to 5A1 covenant of Tesco Stores Limited

� Rental income of £61,347.50 per annum

� Unexpired lease term of 17.9 years with 7.9 years to tenant break

� Upwards only index linked rent review due 3rd July 2019

� Minimal local competition from other convenience stores

� We are instructed to seek offers in excess of £965,000 for our client's freehold interest, subject to contract and exclusive of VAT.

� Purchase at this level would reflect a net initial yield of 6% assuming standard purchaser's costs of 5.71%.

2

Location

Derby is the commercial and administrative centre of Derbyshire and the third largest conurbation in the EastMidlands after Nottingham and Leicester. Derby is locatedapproximately 42 miles north-east of Birmingham, 16 mileswest of Nottingham and 30 miles to the south of Sheffield.

The city of Derby has a population of approximately250,000 and an estimated primary catchment populationof 554,000 people (PROMIS 2014). Derby is one of the UK’seconomic hotspots ranked second out of all UK cities foremployment growth. (Source: University of Derby ).

Derby benefits from excellent transport links being located7 miles to the west of Junction 25 of the M1, accessed viathe A52 to the east. To the west, the A50 links Derby toStoke-on-Trent and Junction 15 of the M6 motorway,whilst to the south-west, the A38 affords quick access toBirmingham.

Derby's mainline railway station lies about 0.7 miles to thesouth of the property. There are direct trains betweenDerby and London St Pancras with a journey time of 1 hour30 minutes with a frequency of up to every 30 minutes.

The East Midlands International Airport is located just over10 miles to the south east of the city and serves over 4 million passengers each year.

TESCO STORES LTD,SUNNYHILL,DERBYTOTAL COMMITMENT IN EXCESS OF £965,000

3

4

Situation

The property is situated on Stenson Road in Sunnyhill tothe south of Derby city centre, just off the B5021 whichlinks the A52 to the east and west. Sunnyhill is an established, primarily residential area with the combinedpopulation of Sunnyhill and Littleover being C.23,000. Inaddition to the road network Peartree rail station whichis located on the Derby Crewe line has a journey time toDerby mainline station of 7 minutes.

Within a two mile radius there are a number of schools including St George's Catholic Primary School, Gayton Junior School, Little Scholars Day Nursery, NormantonInfants School and Derby Moor Community Sports College.

Despite the density of the residential population there isminimal local competition with only a small Co-op being located in Sunnyhill within 1 mile of the subject property.

The nearest local competition to this property:

Sainsbury's 1.1 miles

Asda 1.5 miles

Morrison's 2.34 miles

Co-op 0.5 miles

M50

M5

M40

M42

M6

M69

M1

M6 Toll

M54

M6

M1

24A50

A50

A38 A42

M42

A38

A6

Stoke on Trent

Uttoxeter

Stafford

Burton upon Trent

Telford

Great MalvernEvesham

Wolverhampton

Worcester

Birmingham

Coventry

Stratford upon Avon

Lichfield

YYYBYBYRRRREEEEEDDD BYYBYBBBEEEEEDD RRRRRBBDD RR YYBA52

A38

A5111

A61

A6

A52

A6

A52

A52

A516

A5250 A5194

A50

A5111

STEN

SON

ROAD

5

DERBY

PROPERTY

6

Description

Built in 1936 in the art deco style as a Blue Pool publichouse the property was fully refurbished in 2009 to providea Tesco Express convenience store. The property providesa ground floor area of 4,713 sq ft GIA with a net sales areaof 3,015 sq ft. In front of the property is a tarmacked parking area providing 13 parking spaces including 2 disabled spaces.

The upper floor of the property formerly providedancillary residential accommodation to the public house.This space which is included within the Tesco demise,is currently mothballed by them, but would provide a futuredevelopment opportunity, subject to the usual consents.

Plan for indicative purposes only.

Tenure

FREEHOLD

Tenancy

The property is let to Tesco Stores Limited for a term of 25years from 03/07/2009 on a full repairing and insuring leasewith five yearly index linked upward only rent reviews(minimum increase of 1% and capped at 4%). Please seethe tenancy schedule below:

Address: Blue Pool Hotel, Stenson Road.

Tenant Start Expiry Review Rent £paDate Date Date Date

(Break)

Tesco 03/07/09 02/07/34 03/07/19 £61,347.50Stores (03/07/24Limited

Total £61,347.50

7

Tenant Covenant Information

Tesco was founded in 1919 and now operates in 12 countries around the world, employing over 530,000 people. In 2013/14 group sales totalled £70.9bn and thegroup profit before tax was £2.3bn. Tesco has 7,599 storesworldwide with 3,461 of those located in the UK.

Tesco Stores Limited has a Dun & Bradstreet rating of 5A1,representing a minimum risk of business failure and basedon a tangible net worth of £3,038,000,000.

Market CommentaryWe are aware of the following transactions taking place atauction. All of the properties in thetable below are let to Tesco Stores Ltd:

EPC RatingsThe property has been given an EPC Rating of E112.Full information to be provided upon request.

VATThe Property has been elected for VAT. It is proposed thetransaction will be treated as a TOGC.

ProposalWe are instructed to seek offers in excess of £965,000 forour client's freehold interest, subject to contract and exclusive of VAT. A purchase at this level would reflect a netinitial yield of 6% assuming standard purchaser's costs of5.71%.

Fiscal Consolidated GBP Fiscal Consolidated GBP Fiscal Consolidated GBP

22 Feb 2014 23 Feb 2013 25 Feb 2012

Sales Turnover 42,547,000,000 42,662,000,000 41,981,000,000

Profit 1,696,000,000 921,000,000 1,126,000,000

Tangible Net Worth 3,038,000,000 3,113,000,000 6,894,000,000

Date Address Rent (pa) Lease Start Term Certain Price Yield

Under offer 1 Clifton Road, £60,000 On completion 10 years £1,135,000 5.00%Isleworth, London of building

March 2015 Yorktown Road, £85,000 On completion 15 years £1,495,000 5.37%Sandhurst of building

Dec 2014 213-219ˆ £48,500 25/11/2014 9.5 years £830,000 5.52%Station Road

Oct 2014 26 The Droveway, £26,603 29/09/2006 6.3 years £430,000 5.90%Hove

Oct 2014 25 Derby Road, £48,000 10/11/2010 4.5 years £740,000 6.13%Chellaston, Derby

8

Further Information

Contact:

Mike FoxE: mike.fox@bidwells.co.uk

DD: 020 7297 6273

Bidwells25 Old Burlington StreetLondon W1S 3AN

August 2016

Contact:

Kat IlettE: katherine.ilett@bidwells.co.uk

DD: 020 3761 3633

Bidwells25 Old Burlington StreetLondon W1S 3AN

IMPORTANT NOTICE RELATING TO THE MISREPRESENTATION ACT 1967Bidwells LLP act for themselves and for the vendors of this property, whose agents they are, give notice that:These particulars do not form part of any offer or contract and should not be relied upon as statements or representatives of fact. Bidwells LLP has no authority to make or give in writing or verbally any repre-sentation or warranties in relation to the property. Any areas of measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. No assumptions should be made that the property has all necessary planning, building regulation or other consents. Bidwells LLP have not carried out a survey, nor tested the services, appliancesor facilities. Purchasers must satisfy themselves by inspection or otherwise. In the interest of Health & Safety, please ensure that you take due care when inspecting the property.Bidwells LLP is a limited liability partnership registered in England & Wales (registered number OC344553). Registered head office is Bidwell House, Trumpington Road, Cambridge CB2 9LD, where a list ofmembers is available for inspection.

9

01223 841 842bidwells.co.uk