Grove House, Headley Road, Grayshott GU26 6LE

Retail & Unbroken Residential Investment Opportunity For Sale on behalf of Messrs J Pitt & B Moon as joint Fixed Charge Receivers Grove House, Headley Road, Grayshott GU26 6LE www.singerviellesales.com t

Location Grayshott is an award winning village within National Trust countryside on the north east Hampshire / Surrey border and is located approximately 72 km (45 miles) south east of London, 24 km (15 miles) south east of Guildford, 13 km (8 miles) south of Farnham and 6.4 km (4 miles) north west of Haslemere. Grayshott benefits from good road communications being located adjacent to the A3 Hindhead Tunnel which links directly with the M25 Motorway (Junction 10) approximately 32 km (20 miles) to the north east. The A3 also serves the south coast, connecting with the A27 approximately 40 km (25 miles) to the south. Frequent train services from London Waterloo to Haslemere take approximately 50 minutes. In addition, London Heathrow Airport is approximately 56 km (35 miles) to the north east and Gatwick International Airport is approximately 64 km (40 miles) to the east. Grayshott is surrounded by National Trust sites of outstanding natural beauty including Waggoners Wells, Ludshott Common, The Devil s Punchbowl, Gibbet Hill and Hindhead Commons. Notable residents of Grayshott have included George Bernard Shaw, Sir Arthur Conan Doyle, Alfred, Lord Tennyson and Colin Firth. Situation The property is situated along the south side of Headley Road between its junctions with Crossways Road and The Avenue. Headley Road is the main thoroughfare in Grayshott which leads to the A3 and the Hindhead Tunnel. A wide range of shops including fashion and clothing, flowers, gifts and cards, hair and beauty, home and garden, charity shops and estate agents are available in Grayshott. There is also a variety of convenience stores, greengrocers, bakeries, banks, pubs and restaurants. The Grayshott Market takes over Grayshott Village Square, which is diagonally opposite the subject property, every third Saturday of the month selling locally sourced food and crafts. There is a public car park directly behind the property on Crossways Road with a footpath adjacent to the property leading to and from Headley Road. In addition, there is on street parking directly in front of the property along Headley Road. Description Grove House provides a refurbished modern property of retail space on the ground floor with self- contained residential at first floor level. The property comprises three ground floor retail units; a Sainsbury s supermarket, a Haart estate agency and a unit which is currently vacant. The first floor comprises of 11 residential flats providing six 1-bedroom and five 2-bedroom flats which are all separately let on Assured Shorthold Tenancies. The property also benefits from 15 car parking spaces. One space is let to Sainsbury s, two to Haart with the remainder for the use of the residential tenants. Accommodation The property has been measured by BKR Floor Plans and provides the following Net Internal and Gross Internal floor areas; Sq Ft Sq M Sq ft Sq M (NIA) (GIA) Unit 1 -Sainsbury s 4,506 418.61 4,668 433.66 Unit 2 5,442 505.56 5,451 506.4 Unit 3 Haart 903 83.89 966 89.74 Sub- Total 10,851 1,008.06 11,085.00 1,029.80 Flat 1. 1 bed 1 bath 567 52.67 Flat 2. 1 bed 1 bath 567 52.67 Flat 3. 2 bed 2 bath 784 72.83 Flat 4. 2 bed 2 bath 823 76.46 Flat 5. 1 bed 1 bath 552 51.28 Flat 6. 1 bed 1 bath 567 52.67 Flat 7. 1 bed 1 bath 539 50.07 Flat 8. 2 bed 2 bath 796 73.95 Flat 9. 1 bed 1 bath 579 53.79 Flat 10. 2 bed 2 bath 711 66.05 Flat 11. 2 bed 2 bath 737 68.47 Sub-Total 7,222 670.92 Site We estimate the site area to be approximately 0.22 hectares (0.54 acres). A Phase 1 Environmental Survey was carried out by Groundsure in August 2014. The report concluded that the site presents a low environmental risk for continued use for commercial / residential purposes. A copy of the report is available to download.

Tenure Freehold. Tenancies The commercial element of the property is let to Sainsbury s Supermarket Limited and Haart Limited, plus the vacant unit. The residential element is let to 11 tenants in accordance with the attached Tenancy Schedule. The total current income is 198,185 per annum of which 97,025 per annum is from the commercial element and 101,160 per annum is from the residential element. Covenants Sainsbury s Supermarkets Limited (Co. No. 3261722) has reported the following figures: Year Ending 16 th March 2013 16 th March 2012 Turnover 23,290 million 22,288 million Pre-Tax Profit 616 million 1,114 million Total Equity 4,667 million 4,659 million The principal activity of the company is grocery and related retailing. Founded in 1869, the company operates over 1,203 stores comprising 583 supermarkets and 523 convenience stores and employs around 161,000 people. For further information please visit www.jsainsburys.co.uk. Haart Limited (Co. No. 01980572) is a non-trading company. The ultimate parent company is Spicerhaart Group Limited (Co. No. 4081664) which has reported the following figures: Year Ending 31 st Dec 2012 31 st Dec 2011 Turnover 92,263,074 88,789,516 Pre-Tax Profit 6,394,717 1,759,576 Shareholders' Funds 13,957,667 7,316,632 The Groups's principal activity is estate agency together with a broad range of complementary business streams. According to is website Spicehaart is one of the Uk's most innovative estate agency group, combining the largest independent residential sales and lettings network with one of the biggest integrated financial services businesses in the country. The Spicerhaart Group operates five estate agency brands - haart, Spicer McColl, Haybrook, Felicity J Lord and Chewton Rose. They also have an alternative to high street estate agencies through isold.com. For further information please visit www.spicerhaart.co.uk. Service Charge The total service charge budget for the period 1st April 2014 to 31st March 2015 is 34,150.00. 22,450 relates to the residential element of the property and 11,700 relates to the commercial element. A copy of the service charge budget is available to download. Opportunities to enhance value The interest for sale provides an interesting opportunity to acquire a substantial unbroken, detached, mixed-use property in the centre of an affluent Hampshire / Surrey location. From our research we are advised that 2014 has been a record year for the residential market with continuing high demand from tenants, owner occupiers and buy-to-let investors alike. The chance to acquire an entirely unbroken property in this locale will provide an investor with a number of opportunities to enhance the value of the property including; Sell flats on an individual basis to owner-occupiers or investors; Increase the rental income by securing a tenant(s) for the vacant retail unit; Obtain a higher rent pro-rata for the front section of the existing retail unit by reducing its depth. This could provide an opportunity to add value to the rear section by providing on-site storage for the residential accommodation, self-contained office accommodation, or perhaps parking; Seek to create extra residential onsite, subject to consent. Value Added Tax The property has been elected for VAT. Therefore, VAT will be payable on the purchase price. It is envisaged the sale will be treated as a Transfer of a Going Concern (TOGC).

Accommodation Residential Unit Floor Area (sq. ft.) Unit Floor Area (sq. m) Unit Occupation Description 1 567 52.67 AST Tenant Name Mr. P.M. Appleton & Mrs. C. Appleton Type Start Date Lease Term End Date Break Date Rent Review Monthly Rent Current Annual Rental Income 1 bed 1 bath 31/08/2012 12 months 30/08/2013 675 8,100 2 567 52.67 AST Miss C.E. Morley 1 bed 1 bath 14/08/2014 12 months 13/08/2015 675 8,100 3 784 72.83 AST Grove House, Headley Road,Grayshott GU26 6LE - Tenancy Schedule Mr. J.A. Gilby & Miss A. On 2 bed 2 bath 24/08/2013 12 months 23/08/2014 850 10,200 4 823 76.46 AST Mrs. H.M. Warren 2 bed 2 bath 03/04/2014 6 months 02/10/2014 875 10,500 Current Rental Income Per Sq Ft Comments New Letting 935.00 deposit 6 month break clause not exercised 1,177 Deposit 6 months' rent paid in advance = 5,250 1,212 Deposit 5 552 51.28 AST Mr. K.B. Holden & Miss K.L. Baguley 1 bed 1 bath 03/03/2014 6 months 02/09/2014 675 8,100 6 567 52.67 AST Mr. R. Kawa 1 bed 1 bath 16/06/2014 12 months 15/06/2015 675 8,100 7 539 50.07 AST Mr. J.D. Morris 1 bed 1 bath 05/04/2013 6 months 04/10/2013 675 8,100 8 796 73.95 AST Miss R.E. Cichowlas & M.M. Piotrowski & Mrs A.W. Bebas Rollover Option after the 6 month term 6 month break clause 2 bed 2 bath 24/08/2013 12 months 23/08/2014 850 10,200 1,177 Deposit 9 579 53.79 AST Miss L.K. Brown 1 bed 1 bath 26/10/2013 12 months 25/10/2014 710 8,520 10 711 66.05 AST Mr. D.A. Crossley & Mrs. I.M. Crossley 2 bed 2 bath 14/05/2014 6 months 13/11/2014 895 10,740 11 737 68.47 AST Mr. A Anders 2 bed 2 bath 25/09/2012 12 months 24/09/2013 875 10,500 Sub - Total 7,222 670.91 8,430 101,160 Commercial UNIT 1 903 83.89 Let Haart Limited Lease Renewal 07/05/2013 5 years 06/05/2018 07/05/2016 11,500 12.74 UNIT 2 5,442 506 Vacant Vacant ~ ~ ~ ~ ~ ~ UNIT 3 4,506 419 Let Sainsbury s Supermarkets Limited FRI 15/03/2012 15 14/03/2027 15/03/2022 15/03/2017 & 15/03/2022 Sub - Total 10,851 1,008 97,025 TOTAL 18,073 198,185 85,525 18.98 Rollover option after the 12 month term 983 deposit Rollover Option after the 6 month term 1,239 Deposit 1,212 Deposit New lease currently in legals Tenant break option on 07.05.2016 Rent reviewed to RPI compounded annually with a collar of 1.5% & a cap of 3.5%. Tenant break option 15.03.2022, subject to 6 months' notice.

Proposal We are instructed by our client to invite offers in the region of 3,500,000, (Three Million, Five Hundred Thousand Pounds), subject to contract. We suggest that one could assess the asking price as follows; Residential (1) 1,900,000 5.00% NIY 263 per sq ft Sainsbury s (2) 1,150,000 7.00% NIY 255 per sq ft Haart 120,000 9.00% NIY 132 per sq ft Vacant Unit (3) 330,000 61 per sq ft Total 3,500,000 1. We suggest that the total value of the residential flats if sold individually would be in excess of 2.2m, based upon sale figures of 160,000 for 1-bedroom flats and 250,000 for 2-bedroom flats. 2. Therefore, the total of the individual values represents a 15% margin compared to the suggested apportioned value for the residential accommodation. 3. The suggested apportioned value represents a generous 5% income return compared with buy-to-let investment sales often at 3.50%. Investment Considerations 1. An opportunity to acquire a substantial, detached, town centre,retail & residential investment in an affluent South East location; 2. Modern accommodation at the centre of Grayshott s amenities; 3. 11 flats all individually let on Assured Shorthold Tenancies in a high value residential location, available as a whole at a discount to full value. 4. Retail accommodation majority let to Sainsbury s for a further 12.5 years; 5. Various opportunities for an investor to enhance value; 6. Attractive lot size to an investor; 7. A purchase at the asking price represents an attractive yield profile; Contact Singer Vielle 94-96 Wigmore Street dale@singervielle.co.uk London W1U 3RF Tel: 020 7935 7200 richard@singervielle.co.uk Fax: 020 7486 8511 www.singerviellesales.com neil@singervielle.co.uk 4. 7.00% is a comparatively conservative yield for a South East convenience store investment. Singer Vielle has recently sold similar investments at yields of 6% which can be seen on our Previous Sales section. Vendors Solicitor Faye@singervielle.co.uk Jackie@singervielle.co.uk 5. A significantly lower capital value compared to the values on the let retail units, thereby validating the suggested opportunity to enhance value. AMB Law 46 New Broad Street scarter@amblaw.co.uk London EC2M 1JH Tel: 020 7329 4242 Subject to contract and exclusive of VAT This property is being marketed on behalf of joint Fixed Charge Receivers J Pitt and B Moon who are acting as agents of Weybourne Reef Limited, without personal liability and therefore no warranties or guarantees in any respect including but not limited to VAT can be given. The Fixed Charge Receivers are not bound to accept the highest or any offer and are acting without personal liability. Misrepresentation Act 1967 Singer Vielle for themselves and for the Vendors or Lessors of this property whose Agents they are give notice that: 1. The particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract 2. All descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchasers or tenants 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 Singer Vielle has any authority to make or give any representation or warranty whatever in relation to this property. 4. All maps are for identification purposes only and should not be relied upon for accuracy. 5. 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