Prime Retail Warehouse Investment PHOENIX AND LION WAY RETAIL PARKS, PHOENIX WAY, SWANSEA SA7 9DG

Prime Retail Warehouse Investment PHOENIX AND LION WAY RETAIL PARKS, PHOENIX WAY, SWANSEA SA7 9DG

INVESTMENT SUMMARY Two established Open A1 retail parks located in Swansea, Wales second city, with a shopping population of over 500,000 people Both parks are located off Phoenix Way in the Lakeside Shopping Park, 1.5 miles from J44 of M4 motorway Purpose built retail warehouse parks, Phoenix Retail Park has recently been significantly refurbished 9 units totalling 93,784 sq.ft Occupiers include B&M Retail, Iceland, Home Bargains, Farmfoods, Poundstretcher and Poundworld Phoenix Retail Park WAULT 8.1 years to break and 9.4 years to expiry Total net income 909,172 per annum 47% of the income is secured to 5A1 covenants with a WAULT on this element of 12 years Low average rent of 10.94 per sq.ft Significant asset management and development options across both parks Offers sought in excess of 10,750,000 which reflects a net initial yield of 8.0% for the long leasehold interest, assuming costs of purchase of 5.80%. Lion Way Retail Park

LOCATION Swansea is Wales second city and one of the principality s foremost administrative, commercial and industrial centres. The city is located approximately 42 miles west of Cardiff, 51 miles west of Newport and 85 miles west of Bristol. Swansea has excellent road and rail communications with the M4 motorway 5 miles to the north with access from junctions 44 and 45. The mainline railway network provides a direct service to London Paddington with a fastest journey time of circa 2 hours 50 minutes. The city has an urban population of over 240,000 people and the estimated shopping population of Swansea is circa 537,000 persons. It ranks 29th out of the Promis Retail centres.

SITUATION The parks are situated within an established retail warehouse location known as Lakeside Shopping Park, located 4 miles to the north east of Swansea city centre and 1 mile to the south west of J44 of the M4 Motorway. X NI OE NW AY PH LIO W AY Enterprise Retail Park and a Tesco Extra superstore are adjacent with occupiers including Halfords, SCS and Carpetright. St David s Retail Park is also within close proximity with occupiers including Smyths Toys, Simply Gym and Maplin. Other occupiers in close proximity include Go Outdoors, Oak Furniture Land, Magnet, Screwfix, Toolstation, KFC, Burger King, Premier Inn, and an Asda superstore.

DESCRIPTION Phoenix Retail Park comprises five retail warehouse units which are prominently positioned fronting onto Phoenix Way, Fendrod Way and Nantyffin Road, which are all adopted highways. The units are of steel portal frame construction and have been comprehensively refurbished including replacement of the external cladding and glazed entrances, reconfiguring the units and resurfacing the car park. Unit 1 fronts onto Nantiffyn Road and has a separate access and car park of 101 spaces. The remaining four units are arranged in an L shape and front onto Phoenix Way and Fendrod Way with a shared car park of 240 spaces. Servicing to each unit is provided to the rear. Access is provided off Phoenix Way however planning consent has been obtained to create a new access off Fendrod Way which will further enhance the accessibility of the site and assist on future asset management initiatives. There is approximately 0.27 hectares (0.65 acres) of development land to north of the car park on Phoenix Retail Park (with further developable land adjacent which is outside the demise and under the ownership of Swansea City Council) which would suit a drive-thru unit, restaurant or retail warehouse unit subject to obtaining the necessary planning consent. Lion Way Retail Park comprises four retail warehouse units fronting onto Lion Way (also an adopted highway) and Phoenix Way and opposite Phoenix Retail Park. The units are of steel portal frame construction and are arranged in an L shape in two terraces with a shared car park of 95 spaces. Swansea Recycling Development site - Drive thru or Restaurant ACCOMMODATION & SITE The property has been measured in accordance with the RICS Code of Measuring Practice 6th edition and extends to a total area of 8,712.79 sq.m (93,784 sq.ft) with individual unit sizes ranging from 316.91 sq.m (3,411 sq.ft) to 1,760.70 sq.m (18,952 sq.ft). Individual unit sizes are set out in the tenancy schedule. Potential alternative access road Phoenix Way extends to 2.51 hectares (6.21 acres) and Lion Way Retail Park extends to 0.92 hectares (2.28 acres).

PLANNING The property benefits from an Open A1 (including food) planning consent. TENURE Phoenix and Lion Way Retail Parks are offered by way of two separate long leasehold interests from The City and County of Swansea for terms of 125 years from 29 September 2013. The current ground rents are 89,000 per annum for Phoenix Retail Park and 28,000 per annum for Lion Retail Park. The leases are both subject to upwards and downwards 5 yearly reviews to the higher of: Phoenix Retail Park 10% of the open market rent value of the units (as configured at the start of the terms and assuming a shell specification) let individually (assuming 15 year terms and institutionally acceptable leases). 10% of the aggregate of the average yearly rents receivable by the tenant in the previous 5 years (reducing on redevelopment if the landlord does not contribute towards the capital cost). 89,000 per annum for Phoenix Retail Park and 28,000 per annum for Lion Retail Park. Phoenix Retail Park

TENANCIES The property is let on seven occupational leases with two units vacant producing a total income of 1,026,172 per annum including the proposed rental guarantees. The WAULT to break is 8.1 years and 9.4 years to expiry. The average passing rent equates to 10.94 per sq.ft. PROPERTY UNIT FLOOR AREA sq.ft. TENANT TERM EXPIRY NEXT REVIEW Phoenix 1 18,952 B&M Retail Ltd 15yrs from 07/04/10 BREAK RENT p.a. RENT psq.ft. EPC RATING COMMENTS 06/04/25 07/04/15 180,000 9.50 C - 58 Rent reviews upwards only 5 yearly. 1st review to lower of OMV or 198,000 per annum. 2nd review to lower of OMV or 218,000 per annum. Lease subject to a Schedule of Condition. Phoenix 2 18,565 Vacant 222,780 12.00 B - 42 Interest received from three national retailers. Vendor to provide a 2 year rent, rates and service charge guarantee. Phoenix 3 6,644 Iceland Frozen Foods Ltd Phoenix 4 10,069 Poundworld Retail Ltd Phoenix 5 9,914 TJ Morris Ltd (t/a Home Bargains) Lion Way 1a 12,862 Poundstretcher Ltd Lion Way 1b 4,953 Swansea Recycling and Donation Centre Ltd 15yrs from 10/09/12 15yrs from 17/10/11 15yrs from 01/02/11 15yrs from 12/02/11 10yrs from 16/11/12 Lion Way 2a 8,414 Farmfoods Ltd 25yrs from 09/01/04 09/09/27 10/09/17 10/09/22 83,312 12.54 C - 59 Rent review upwards only 5 yearly. Break subject to 6 months notice. 17/10/26 17/10/16 17/10/21 150,000 14.90 B - 50 Rent reviews upwards only 5 yearly. 1st review to lower of OMV or 191,441 per annum. 2nd review to lower of OMV or 244,330 per annum. Break subject to 6 months notice and 9 months break penalty 31/01/26 01/02/16 150,000 15.13 B - 50 Rent reviews upwards only 5 yearly. 1st review to lower of OMV or 173,891 per annum. 2nd review to lower of OMV or 201,586 per annum. Service charge cap of 15,079.50 per annum increasing annually by 2% (currently no shortfall). 24/03/26 12/02/16 12/02/21 123,000 9.56 C - 67 Rent review upwards only 5 yearly. Service charge cap of 13,000 per annum increasing annually by RPI (currently no shortfall). Break subject to 6 months notice. Tenant has been in occupation since 1986. 15/11/22 16/11/17 16/11/14 16/11/17 20,000 4.04 C - 67 Rent years 1&2 20,000 per annum, year 3 30,000 per annum, year 4 40,000 per annum and year 5 50,000 per annum. Lease is subject to a Schedule of Condition. Tenant has excercised their option to break the lease in November 2014. 08/01/29 09/01/19 69,080 8.21 B - 43 2014 break removed and lease extended to 2029. Stepped rent from 2013-2018 - vendor will top up the rent to 2018 level. Rent review upwards only 5 yearly. Lion Way 2b 3,411 Vacant 28,000 8.21 C - 65 Vendor to provide a 2 year rent, rates and service charge guarantee. TOTAL 93,784 1,026,172 TOTAL GROUND RENT TOTAL NET RENT - 117,000 909,172

COVENANTS 47% of the income on the parks is let to covenants with D&B ratings of 5A1 with a WAULT on this element of 12 years. Financial information on each covenant is set out below. Tenant D&B Rating Year End Turnover,000 s Pre-Tax Profit,000 s Shareholder s Funds % of income B&M Retail Ltd 5A1 31/12/12 935,229 88,323 171,867 17.50 Iceland Frozen Foods Ltd Poundworld Retail Ltd 5A1 29/03/13 2,604,669 188,146 516,857 8.00 3A2 31/03/13 293,787 1,892 8,527 15.00 TJ Morris Ltd 5A1 30/06/13 1,058,398 110,856 348,928 15.00 Poundstretcher Ltd N1 31/03/13 367,984 (4,481) (4,708) 12.00 Farmfoods Ltd 5A1 29/12/12 595,062 27,009 70,666 7.00

ASSET MANAGEMENT AND DEVELOPMENT OPPORTUNITIES Let Unit 2 three national retailers are all currently interested in the unit. Further information is available on request. Unit is capable of subdivision. Lion Way Retail Park Develop site to north of car park three national restaurant and retail operators have all expressed interest in the site. Further information is available on request. Develop a food pod in the car park. Develop new access off Fendrod Way. Let Units 1b and 2b tenant of Unit 1b has exercised their break option in November. There is interest in the units from trade counter operators. Further information is available upon request. Phoenix Retail Park

VAT The vendor has elected to waive exemption for VAT and accordingly VAT is charged on the rent. The sale should qualify as a TOGC, subject to purchaser s status. PROPOSAL We are instructed to seek offers of 10,750,000, for the long leasehold in the property. A purchase at this level reflects a net initial yield of 8.00%, after purchaser s costs of 5.80%. CONTACTS For further information or if you wish to arrange a viewing, please contact :- BEN BLACKWALL 0121 513 0893 ben.blackwall@fspproperty.co.uk ANDREW PRICE 0121 513 0892 andrew.price@fspproperty.co.uk Franck Steier Price Ltd Third Floor, Victoria House 114-116 Colmore Row, Birmingham, B3 3BD 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 fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the condition of such equipment for their requirements.