REVERSIONARY SERVICE AREA INVESTMENT LET TO MOTO HOSPITALITY LIMITED

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2 INVESTMENT SUMMARY Rarely available reversionary freehold service area investment ; Highly strategic motorway/trunk road location with average daily passing traffic flows of well over 50,000 (DfT, 2012); Approximately 23½ years unexpired at a fixed peppercorn rent; Recent improvements carried out by tenant including an extension housing an M & S unit and there are consented plans for a Greggs unit. The A1 upgrade to motorway standard of the Leeming to Barton stretch has been approved with forecast commencement of Q Offers are invited in the region of 1,500,000 (One Million Five Hundred Thousand Pounds) to be received no later than Wednesday 11 September 2013.

3 LOCATION Scotch Corner Service Area is located on the roundabout junction of the A1 and the A66(T) four miles north of Catterick and 42 miles south of Newcastle. Penrith is 50 miles to the west via the A66 and Leeds is 55 miles to the south via the A1(M) and A1/M1 link road. The location has long been regarded as a natural watering hole for drivers to and from Scotland and the Northeast of England. The property is located on the north-eastern quadrant of the grade separated roundabout, adjacent to the village of Middleton Tyas, in an otherwise largely rural setting. To the opposite side of the roundabout is a Holiday Inn with leisure centre, and various commercial units. The service area retains a trunk road designation, with advance green signage from all directions. However the upgrading to motorway standard of the final 12-mile stretch from Leeming to Barton has been announced as a key priority for the Highways Agency. Preliminary works are already underway with a forecast construction start of early DESCRIPTION The property comprises the Moto amenity building, Travelodge hotel, car parking, circulation and landscaping areas, together with three parcels of surrounding land. The building has a total measured internal area of approximately 1,188 square metres (12,788 square feet) (excluding back office and walk-in freezers). The service area as demised occupies a site area of 3.61 hectares (8.92 acres) and the surrounding land plots total a further 6.66 hectares (16.45 acres). Internally the amenity building offers M & S, Costa, Burger King and WH Smith units, operated under franchise, together with communal seating, amusements and WC facilities. The M & S was introduced in 2010 with an extension to the building and planning consent was granted in 2012 to construct a further external unit from which we understand Moto would intend to trade as Greggs. REVERSIONARY SERVICE AREA INVESTMENT

4 TENURE The property is held registered freehold, subject to various leases and a right of way in favour of the adjoining petrol filling station which is separately owned. It should also be noted by the prospective purchaser that the A1(M) upgrade scheme includes a new Local Access Road being routed through the field to the south of the service area. The formal compulsory acquisition Orders are due to be issued in late 2013 but an extract of the relevant scheme drawing is available. Tenancy Details The property is let to Moto Hospitality Limited on a 50-year full repairing and insuring lease from April 1987 at a fixed peppercorn rent, with a supplementary lease of the hotel land later granted on similar terms in May Service charge obligations are included such that the operators of the service area pay for all maintenance expenditure on common parts. A sublease of the hotel was granted, at a premium, in November 2004 to Travelodge Hotels Limited to expire in March Additionally, two of the three surrounding freehold land plots are subject to a Farm Business Tenancy, a copy of which is available upon request. Vacant possession is offered on a third plot to the southwest quadrant of the roundabout. Asset Management / development opportumities We consider an excellent opportunity exists for a long-term investor to acquire the reversionary freehold, with the potential for active management together with the tenant prior to lease expiry. Recent additions by the tenant to the amenity building have included an extension to house the M & S unit and planning consent has been granted for a new standalone unit to the front of the building that will house their Greggs franchise.

5 Covenant Information Moto Hospitality Limited is a group company of Moto Holdings Limited, owned by a consortium of investors including the Macquarie Group. Moto currently has 59 motorway and trunk road service area locations across the UK and its franchised offer now includes M & S, Costa, WH Smith, Burger King and Greggs. Moto Hospitality Limited has an Experian Credit Rating of Above Average Risk and a Delphi Score of 45. A very brief summary of recent years accounts is as follows: Accounts Summary 28/12/2011 m 29/12/2010 m Total Revenue Pre-tax Profit (48) (64) Total Assets Moto Holdings Limited has a rating of Below Average Risk and a score of 80. Full Experian Credit Reports and a copy of its Financial Statement 2011 are available on request. REVERSIONARY SERVICE AREA INVESTMENT

6 VAT VAT will be charged on the purchase price. Proposal We are instructed by Esso Petroleum Company Limited which has a number of mandatory clauses in its sale contract, a summary of which will be provided within information packs which are available upon request. Environmental reports will be provided to the purchaser, who will become joint addressee on completion. Offers are invited in the region of 1,500,000 (One Million Five Hundred Thousand Pounds), subject to contract and exclusive of VAT. Contact For further information please contact CBRE s Petroleum & Automotive Team: Alastair Coates Richard Syers t: +44(0) t: +44(0) e: alastair.coates@cbre.com e: richard.syers@cbre.com EPC CBRE Limited Toronto Square Toronto Street Leeds LS1 2HJ CBRE Limited on its behalf and for the Vendors or Lessors of this property whose Agent it is, give notice that: 1. These particulars are set out as a general outline only for guidance to intending Purchasers or Lessees, and do not constitute any part of an offer or contract. 2. Details are given without any responsibility and any intending Purchasers, Lessees or Third Parties should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. 3. No person in the employment of CBRE has any authority to make any representation or warranty whatsoever in relation to this property. 4. Unless otherwise stated, all priced and rents are quoted exclusive of VAT. 5. Please note that unless explicitly stated otherwise, any advice contained within this report relating to the value of property is provided in accordance with CBRE s terms of engagement in preparation for or during negotiations, or in connection with agency or brokerage work, on the understanding that it will be used for the recipients internal purposes only, that the scope or basis is restricted to the basis set out in this report or CBRE s terms of engagement and will not be relied upon by third parties. Neither CBRE nor the author can accept any liability to the recipient, nor third parties, who may seek to rely upon this advice for other purposes August 2013