HADDEN HILL RETAIL PARK DIDCOT, OX11 9DA THE GARDEN TOWN S ONLY RETAIL PARK PRIME & SECURE INVESTMENT OPPORTUNITY IN GROWING CATCHMENT

HADDEN HILL RETAIL PARK DIDCOT, OX11 9DA THE GARDEN TOWN S ONLY RETAIL PARK PRIME & SECURE INVESTMENT OPPORTUNITY IN GROWING CATCHMENT

Didcot is a south east commuter town located approximately 12 miles south of Oxford and 5 miles west of Wallingford. An affluent 20 minute drivetime catchment with a population of 120,703, with 64% of households within AB or C1. The town also benefits from strong population growth forecasts. Hadden Hill Retail Park comprises the only retail warehousing provision in the town and is situated adjacent to the town s dominant Tesco foodstore which has a gross internal area of 52,000 sq ft and a 30,750 sq ft net sales area. Open A1 (including food) planning permission. The property is fully let on three FRI leases and currently produces a total rent of 667,500 pa, reflecting recently agreed rents of between 14.79 and 19.92 per sq ft. WAULT of approximately 9 years with no breaks. A well let scheme to three national retailers well placed to take advantage of the growing population forecast for the town. We are seeking 10,880,000 (Ten Million Eight Hundred and Eighty Thousand Pounds) for our client s freehold interest, reflecting a net initial yield of 5.75%, assuming purchaser s costs of 6.70%. 2 INVESTMENT SUMMARY

3 THE ORCHARD CENTRE ALDI TESCO SUPERSTORE LADYGROVE EAST (700 HOMES PROPOSED)

LOCATION Didcot is an Oxfordshire town, located approximately 5 miles west of Wallingford, 12 miles south of Oxford and 21 miles north west of Reading. Central London is located approximately 50 miles to the east of the town. The town benefits from excellent road and transport communications. The provides a link to both the M4 to the south and the M40 to the north. These motorways provide direct access to Central London, the M25 and cities in the west of the UK such as Bristol, Bath and Birmingham. OXFORD A415 A4074 DIDCOT A417 A40 M40 8 WALLINGFORD 6 A418 M40 A4010 AYLESBURY 4 A404 A413 HIGH WYCOMBE A41 2 M25 16 LUTON 17 20 A40 9 HANNEY ROAD 8 21 WATFORD LONDON 22 ABINGDON ROAD 3 A406 23 F EATHERBED LANE HIGH S 4 Didcot is a London commuter town with excellent rail communications providing regular services from Didcot Parkway to London Paddington as well as Oxford, Bristol Temple Meads and Cardiff Central. The fastest journey time to London Paddington is approximately 45 minutes 13 A329 M4 READING 10 8 BRACKNELL M4 13 15 M25 A417 SITUATION NEWBURY 12 11 M25 Hadden Hill Retail Park occupies a highly prominent position on the south side of Hadden Hill approximately 1 mile east of the town centre. The property shares its access with the town s dominant foodstore (and petrol filling station) which comprises a 52,000 sq ft Tesco superstore with a circa 30,750 sq ft net sales area. The Tesco is understood to be the town s busiest foodstore with the only other significant foodstore in the town being a Sainsbury s at the Orchard Centre, located on the high street. The subject property is the only retail warehousing in the town. The Orchard Centre, which opened a Phase 2 in March 2018, includes an anchor M&S Foodhall, TK Maxx, H&M, River Island and Boots. Latest signings include mother and baby boutique JoJo Maman Bébé, fashion brand Fat Face and designer shoe retailer Soletrader. The recent expansion of The Orchard Centre demonstrates the growth of Didcot town centre, which is part of wider plans to transform Didcot into a Garden Town and deliver 20,000 new jobs and 15,000 new homes over the next 20 years. A4185 A417 MILTON PARK MILTON PARK OXFORD / ABINGDON HIGH STREET READING ROAD SUTTON COURTNEY ROAD MILTON ROAD GREAT WESTERN PARK (3,300 HOMES) DIDCOT ROAD NEWBURY B4493 B4493 WANTAGE ROAD PARK ROAD FOXHALL ROAD B4493 TOWN CENTRE HADDEN HILL RETAIL PARK -OX11 9DA- DIDCOT PARKWAY BROADWAY NORTH EAST DIDCOT (1,800 HOMES) NEW ROAD JUBI LEE WA Y ABINGDON RD B4016 PROPOSED NORTHERN PERIMETER ROAD LADYGROVE EAST (700 HOMES) HADDEN HI LL SIRES HILL DIDCOT

DEMOGRAPHICS 5 According to Geolytix, the population within a 20 minute drivetime is 120,703. This population is affluent, with 64% of households categorised within the AB or C1 demographic, compared to a national average of 53%. Car ownership is also much higher than average in this area, with 86% of households owning at least one car, compared to a national average of 74%. Home ownership levels (70%) and unemployment rates (2.7%) are also better than UK averages of 64% & 4.4% respectively. Car ownership is also much higher with 86% of households owning at least one car 120,703 is the total population within a 20 minute drive time of the Retail Park. Home ownership levels are at 70%, meaning they are better than the UK average of 64% RESIDENTIAL DEVELOPMENTS The town is forecast high rates of population growth with an aim of providing 16,000 new homes by 2031 The town is forecast high rates of population growth over the period with an aim of providing around 16,000 new homes by 2031. There are three specific growth sites: Great Western Park is a high quality development of 3,300 new homes that is extending the western edge of the town. Building work started in 2011 and so far more than 1,000 homes have been occupied. North East Didcot is a proposal site for 1,800 homes being promoted by the University of Reading and Croudace Homes Ladygrove East is a 30ha site opposite the subject property and Bloor Homes are proposing 700 new homes with its main access point being the roundabout immediately outside the subject property on Hadden Hill. In addition, Didcot Gateway is a town centre development site located opposite Didcot Parkway Station. TESCO SUPERSTORE THE ORCHARD CENTRE

E DESCRIPTION 6 The subject property was constructed in 1992 and comprises three retail warehouse units totalling 42,397 sq ft. The units are of steel frame construction with full height brickwork cladding to the elevations. Customer access to the subject property is via a shared entry road and roundabout, used by both the retail park and Tesco customers. Servicing areas are to the rear of the three units. The site is broadly level and comprises 1.55 hectares (3.82 acres). It benefits from excellent visibility to traffic along Hadden Hill and Tesco, and has prominent road-side signage. MAIN ACCESS POINT PFS ACCOMMODATION UNIT TENANT GIA (SQ FT) GIA (SQ M) 1 B&M 31,343 2,911.84 2 Carpetright 6,000 557.41 3 Halfords 5,054 469.52 TOTAL 42,397 3,938.78 The Halfords unit also benefits from a 2,704 sq ft trading and storage mezzanine. Customer car parking extends to approximately 181 dedicated spaces, providing a ratio of approximately 1:234 sq ft. TENURE Freehold. LADYGROVE EAST (700 HOMES) Hadden Hill () DIDCOT PARKWAY

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TENANCIES & ACCOMMODATION 8 The property is fully let producing 667,500 pa with a WAULT of circa 9 years on effective full repairing and insuring terms with five yearly upward only rent reviews, summarised as follows: UNIT TENANT AREA (SQ FT) LEASE START LEASE EXPIRY RENT REVIEW RENT RENT (PSF) 1 B&M Retail Ltd 30,760 25/03/17 24/03/27 25/03/22 455,000 14.79 2 Carpetright plc 6,000 29/09/17 28/09/27 28/09/22 119,500 19.92 3 Halfords Ltd 5,054 23/08/94 23/06/29 24/06/24 93,000 18.40 COMMENT Stated area in lease: 30,600 sq ft at ground, 160 sq ft lobby Rent review to OMV capped at 12% ( 509,600) Tenant received 8 months rent free. Service charge cap 39,988. (RPI linked). Lease renewal at passing rent. Tenant received 12 months rent free. 10 year reversionary lease from 24/06/2019 at passing rent. No rent review on the 24th June 2019. Tenant received 24 months at half rent expiring 23/06/2019. Rent review to OMV capped at 2.5% pa compounded. TOTAL 41,814 667,500 N.B. There is an electricity substation lease granted to Southern Electric for a term starting on 26 March 1992 and expiring 25 March 2991, together with rights of access. Our client will top up any outstanding rent free periods.

TENANTS COVENANTS 9 82% of the current income is leased to two tenants (B&M and Halfords) with a Very Low Risk rating by Experian, with Carpetright (18%) representing High Risk after their much publicised CVA (Category A) earlier this year, previously rated Very Low Risk up to February 2018. Each tenant s latest published accounts are summarised below. TENANT YEAR ENDING TURNOVER 000 S PRE-TAX PROFIT 000 S TOTAL NET WORTH 000 S EXPERIAN RISK RATING B&M Retail Ltd Mar-18 2,629,145 236,006 600,542 Very Low Risk Carpetright plc Apr-17 457,600 900 20,700 High Risk Halfords Ltd Mar-18 930,800 74,500 765,900 Very Low Risk

PLANNING PROPOSAL 10 Open A1 (including food). Copies of planning permissions are available upon request. ASSET MANAGEMENT We are seeking 10,880,000 (Ten Million Eight Hundred and Eighty Thousand Pounds) for this asset on our client s behalf. A purchase at this level would reflect a net initial yield of 5.75% with assumed purchaser s costs of 6.70%. Given the recent lease renewals across all three units the property has moved towards a solid income based asset. However, the open A1 food retail permission across the scheme continues to provide a medium to long term prospect together with a reconfiguration of the scheme to incorporate smaller units. There have been a number of retailers interested in coming to the scheme over the last few years and a potential subdivision of Unit 1 would provide an opportunity to improve the tenant mix and add further variety to the scheme. VAT CONTACTS Jonathan Perkins 020 7317 3744 07884 186881 jperkins@klmretail.com Will Andrews 020 7317 3741 07970 467 505 wandrews@klmretail.com The property has been elected for VAT and it is anticipated that the sale will be structured as a Transfer of a Going Concern (TOGC). EPC EPCs for all the units are available on request. MISREPRESENTATION ACT: KLM Retail LLP and KLM Out of Town Retail & Leisure Ltd, for themselves and for the vendors of this property, whose agents they are, give notice that (i) the particulars and any further information communicated by any means to potential purchasers of the property described in the particulars, or their advisers, in connection with the possible sale of the property are provided solely for the purpose of assisting potential purchasers in deciding whether they wish to proceed with further investigation of the property and do not constitute either the whole or any part of an invitation, offer or contract for sale of the property; (ii) 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 as at the date of the particulars (or the date of the relevant information if earlier). However, potential purchasers are not entitled to rely on them as statements or representations of fact but should satisfy themselves by searches, enquiries, surveys and inspections or otherwise with regard to the accuracy of such details. No responsibility or liability is or will be accepted by KLM Retail LLP and KLM Out of Town Retail & Leisure Ltd, the vendor(s) of the property or any of their respective subsidiaries, affiliates, directors, officers, representatives, employees, advisors, or agents for any loss or damage suffered by any party, resulting from reliance on the particulars or any other information communicated by any means to that party, or its advisers, in connection with the possible sale of the property. No person in the employment of KLM Retail LLP, KLM Out of Town Retail & Leisure Ltd or the vendor(s) has authority to make or give any representation or warranty, express or implied, in relation to the property. References to KLM Retail and KLM Out of Town Retail Ltd include any joint agents acting with KLM Retail LLP and KLM Out of Town Retail & Leisure Ltd. September 2018.