WELL LOCATED FOODSTORE INVESTMENT OPPORTUNITY WITH RPI UPLIFTS

Aldi, Newmarket Road, Bury St Edmunds IP33 3TS

Investment Summary■ Bury St Edmunds is an affluent historic market

town and important regional centre in Suffolk

■ Prominent foodstore forward commitment topurchase opportunity

■ New store comprising 1,425 sq m (15,338 sq ft)with 83 car parking spaces (1:185 sq ft)

■ Pre-let to Aldi Stores Limited (5A1) with aNet Worth in excess of £1.3 billion

■ New full repairing and insuring lease frompractical completion for a term of 20 yearssubject to a tenant’s option to determine in Year15 and a tenant’s option to renew the lease on thesame terms for a further 20 years

■ Initial passing rent of £250,000 per annum(subject to measurement on PC) equating toa low rent of £16.30 per sq ft (based on thetarget GIA)

■ 5 yearly upward only rent reviews linked to theRetail Price Index (RPI), capped and collared at3% and 1% compounded annually.

■ Freehold

Offers are sought in excess of £4,100,000 (Four Million, One Hundred Thousand Pounds) for the Freehold interest on a forward commitment to purchase basis, comprising an initial site purchase and balancing payment upon completion. A purchase at this level equates to a Net Initial Yield of 5.9% (assuming purchaser’s costs of 5.8% on the land acquisition and 1.8% on the balance).

Postcode: IP33 3TS

Bury St Edmunds

LocationBury St Edmunds is an attractive and historic Suffolk

market town located 32 miles east of Cambridge, 42 miles

south west of Norwich, 28 miles north west of Ipswich

and 75 miles north east of London.

The town benefits from excellent transport links being

situated on the A14 dual carriageway, the main arterial

route linking Ipswich and Cambridge. The A134 and A143

provide convenient links to surrounding centres and

the M11, situated approximately 22 miles to the south

west, provides easy access to central London via the

A11 and A14.

There are regular rail services to Cambridge, Ipswich and

London Liverpool Street, with a fastest journey time of

43 minutes, 28 minutes and 1 hour 10 minutes, respectively.

DemographicsBury St Edmunds benefits from an extensive, affluent

catchment population estimated at 251,000 (Promis).

The area is characterised by an over-representation

of working adults categorised in the highest AB class

groupings comprising those employed within higher

and intermediate managerial, administrative and

professional roles. Conversely those categorised as

economically inactive and on state benefit are particular

under represented.

The town is forecast to see above average population

growth over the short-term and significantly

above average growth in the available pool of

comparison spending.

Further demographic and economic figures which

demonstrate the strength of the catchment include levels

of car ownership, dwelling owner occupation and average

weekly disposable income above the national average.

M8

M90

M77

M74

MIDDLESBROUGH

SHEFFIELD

NOTTINGHAM

BIRMINGHAMCOVENTRY

NORTHAMPTON

HULL

HARTLEPOOLDURHAM

SOUTH SHEILDS

YORK

GRIMSBY

EXETER

BRIGHTONBOURNEMOUTH

SWINDON

READING

GLOUCESTER

LEICESTER

CORBY

KINGS LYNN

LINCOLN

DONCASTER

STOKE-ON-TRENT

SALISBURY

MAIDSTONE

OXFORD

CAMBRIDGE

BURY ST EDMUNDS

NORWICH

CHELMSFORD

COLCHESTER

SOUTHEND-ON-SEA

MARGATE

DOVER

IPSWICH

MANCHESTER

NEWCASTLE UPON TYNE

CARLISLE

LEEDS

EDINBURGH

GLASGOW

BRISTOL

SOUTHAMPTON

CARDIFF

CHESTER

MILTON KEYNES

GUILDFORD

LONDON

M6

M6

M6

M5

M5

M4M4

M3

M2

M1

M1

A1 (M)

M6

M8

A66 (M)

A1 (M)

M90

M77

M74

M25

M50

M20

M11

M40

M62M62

M56

M23

SituationThe development will be prominently located in a

predominantly residential area on the A1302

Newmarket Road, which forms part of the ring road

and provides convenient access to the town centre

located approximately 1 mile (1.5 km) to the east.

The A1302 also directly links with the A14, comprising

the main arterial route through the town.

Description & Design SpecificationUpon Practical Completion the property will comprise

a rectangular shaped foodstore of steel portal frame

construction with profiled metal cladding and glass

elevations, together with concrete floor under a flat roof.

The property will further provide additional plant and

staff facilities to the rear.

A full specification is available upon request.

anticipated on site start date is December with

an approximate 26 week build period and target practical

completion date of June .

There will be car parking at the front of the building

providing approximately 83 spaces, equating to an

excellent ratio of 1:185 sq ft based on the target floor area.

The total site area is approximately 1.69 acres (0.68 ha),

with a low site coverage of approximately 21%.

“The total site area is approximately 1.69 acres (0.68 ha), with a low site coverage of approximately 21%.”

A143

A134

A134

A134

A1302

A143

A143

A1302

A1302

A1101

A14

A14

A14

A14

Bury St Edmunds

Fornham St Martin

Westley

Pestle Wood

Horringer

AccommodationUpon practical completion the property is anticipated to

provide the following approximate gross internal areas.

Sq m Sq ft

Ground Floor Sales 990 10,656

Staff and Storage Ancillary 435 4,682

Total GIA 1,425 15,338

TenureThe site is held Freehold

TenancyAn agreement for lease exchanged with Aldi Stores

Limited in August 2011.

Upon Practical Completion the property and car park will

be held by way of a full repairing and insuring lease for a

term of 20 years, with a tenant’s option to determine in

year 15, at an initial passing rent of £250,000 per annum,

equating to £16.30 per sq ft.

There is a tenant’s option to renew the lease on the same

terms for a further 20 years.

The rent will be subject to 5 yearly, upward only rent

reviews which will be based on the increase in the Retail

Price Index (RPI), subject to a cap and collar of 3% and

1% per annum.

Proposed Foodstore Development - Newmarket Road, Bury St EdmundsClient: Lookers Plc

Date: 14/07/11Job/Dwg: 11122-V100-Site Plan

Scale: NTS@A3www.harrispartnership.com11122 Bury St Edmunds Site Plan V100

Planning Detailed planning permission was granted by

St Edmundsbury Council on 4th September 2012

(reference SE/11/0922) for:

“Erection of discount food store with associated

parking and landscaping (following demolition of

existing car showroom/workshop premises) and

new vehicular access.”

Environmental An environmental report has been undertaken by DTS

Raeburn Limited, a copy of which is available upon

request to interested parties.

VATIt is anticipated the sale will be treated as a TOGC.

Covenant StatusAldi operate from over 400 stores in the UK and 7,500

worldwide and has successfully established itself as

one of the most reputable food retailers in both the

UK and Europe.

The Aldi name is synonymous with value and quality

and they are recognised as a leading convenience

retailing brand having recently won the coveted Which?

Supermarket of the year award for 2012.

The company continues to increase it’s market share

and according to Kantar Worldpanel data for the 12

weeks to 10th June 2012 currently commands 2.8%

of the UK market share, representing a year-on-year

increase of 24.7%.

Aldi has recently announced a strong uplift in sales in

the year to the end of December 2011, with a £57.8m

post-tax profit compared with a £56.8m loss in the

previous year, caused by a £58.5m property write down.

The company has recorded a 450% rise in operating

profit to £103m, with turnover rising to £2.76bn.

Having undertaken a £30m store refit, Aldi will invest a

further £181m in opening 40 new stores by the end of

2013. Aldi’s store estate will stand at more than 500 by

the end of next year and could potentially double its UK

store base to 1,000 over the next 10 years.

Aldi has recorded impressive double-digit growth

throughout 2012 and continues to increase its UK

market share.

Aldi Stores Limited has a Dun & Bradstreet Rating of 5A1

with a current net worth in excess of £1.3billion. The last

3 years accounts are summarised below:

31st December 2010 31st December 2009 31st December 2008

Sales Turnover £2,135,046,000 £2,040,201,278 £2,007,624,672

Pre-Tax Profit / (Loss) (£56,869,000) (£54,212,294) £92,743,401

Tangible Net Worth £1,335,251,000 £1,329,969,355 £1,354,602,542

Professional Team

Developer Bolling Investments Limited

Architect The Harris Partnership

Structural Engineer Fleming Smith

Environmental Consultants DTS Raeburn Limited

Planning Consultants RPS Planning & Development

Solicitors Pinsent Masons

“Aldi operate from over 400 stores in the UK and 7,500 worldwide and has successfully established itself as one of the most reputable food retailers in the UK”

Transaction StructureOffers are sought in excess of £4,100,000 (Four Million, One Hundred Thousand Pounds) for the Freehold interest on a

forward commitment to purchase basis, comprising an initial site purchase and balancing payment upon completion. A

purchase at this level equates to a Net Initial Yield of 5.9% (assuming purchaser’s costs of 5.8% on the land acquisition

and 1.8% on the balance).

Commencing rent (per annum)

Year 5 Year 10 Year 15

Increase of 2% per annumRunning Yield

£250,000

5.9%

£276,020

6.51%

£304,748

7.19%

£336,466

7.94%

Increase of 2.5% per an-numRunning Yield

£250,000

5.9%

£282,852

6.67%

£320,021

7.55%

£362,074

8.54%

Increase of 3% per annumRunning Yield

£250,000

5.9%

£289,819

6.84%

£335,980

7.92%

£389,493

9.19%

Contact

Martin Carey Partner

020 7255 8085

mic@rapleys.co.uk

Rick Mcintosh-WhyteAssociate Partner

020 7255 8064

rdmw@rapleys.co.uk

Jonny DoultonAssociate Partner

020 7255 8099

jdd@rapleys.co.uk

Tom Day

0113 245 0099

tom@stephensonday.co.uk

Rapleys LLP is registered as a Limited Liability Partnership in England and Wales. Registration No: OC308311. Registered Office at

Falcon Road, Hinchingbrooke Business Park, HUNTINGDON PE29 6FG. A full list of Members is available on our website or at any

of our offices during normal business hours. Rapleys LLP operates an Environmental Management System which complies with the

requirements of ISO 14001:2004. Regulated by RICS. Any maps are for identification purposes only and should not be relied upon

for accuracy. Reproduced by permission of Geographers A-Z Map Co. Ltd. Licence No. A0203. This product includes mapping data

licensed from Ordnance Survey - © Crown Copyright 2001. Licence No. 100017302 and © Crown Copyright,

All rights reserved. Licence No. ES 100004619. Misrepresentation Act: These particulars are produced in good faith and believed to be

correct. Neither Rapleys, their joint agents (where applicable) or their client guarantees their accuracy and they are not intended to

form any part of a contract. No person in the employment of Rapleys or their joint agents has authority to give any representation or

warranty in respect of this property. All prices or rents are quoted exclusive of VAT. September 2012

107377 | September 2012

StephenSon Day