Prime Car Showroom and Motor Trade Investment Units 1a, b & c, The Drive, Gatwick Road, Crawley, West Sussex

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1 Prime Car Showroom and Motor Trade Investment Units 1a, b & c, The Drive, Gatwick Road, Crawley, West Sussex

2 Exceptional location fronting major roundabout at the intersection of Gatwick Road and Fleming Way, Crawley Investment Summary Exceptional location fronting major roundabout at the intersection of Gatwick Road and Fleming Way, Crawley 5,078.2 sq.m. (54,622 sq ft) on a site of approximately 3 acres. 60% of income to Volkswagen Group United Kingdom Limited (D&B rating of 5A1) for further 18 years with minimum fixed uplift in March % of income to Euro Car Parts Limited (D&B rating of 4A1) for a minimum of 9.75 years with minimum fixed uplift in January ,258.0 sq m (13,541 sq ft) available to let and subject to 2 years rent, rates and service charge guarantee. Total income receivable of 585,350 pa rising to a minimum of 631,343 pa by March 2013 and 640,955 pa by January Price of 8,500,000 (eight million five hundred thousand pounds) for the freehold interest subject to contract and exclusive of VAT reflecting a net initial yield of 6.51% rising to 7.02% by March 2013, 7.13% in January 2015 and net equivalent and true net equivalent yields of 7.05% and 7.36% respectively after purchaser s costs of 5.75%.

3 Units 1a, b & c, The Drive, Gatwick Road, Crawley, West Sussex Location Crawley is an important sub regional centre situated in the heart of the Gatwick Diamond, one of the most dynamic regions in the country. With a population of 648,000 and a workforce of 343,000 the Gatwick Diamond has a GDP of over 13 billion, approximately 8 per cent of the South East regional output. It is the 11th most significant European Airport region with Gatwick being the UK s second largest airport and the eighth largest in Europe. It is anticipated that a 5 year 1 billion capital improvement for Gatwick Airport will be completed by Crawley is strategically located within the Diamond being a few miles south of Gatwick Airport, 32 miles south of Central London, 20 miles north of Brighton and adjacent to the M23 (junctions 9, 9A, 10A and 11) and 9 miles south of junction 7 of the M25. It has a district population of approximately 100,000 (2001 Census), which is expected to rise to 110,000 within the next few years, and a catchment population of 450,000. Major occupiers include Virgin Atlantic Airways, BAA, Civil Aviation Authority, First Choice Holidays, Thales, Unilever, Deloitte and KPMG. Communications are excellent being home to Gatwick Airport, adjacent to the M23 and benefitting from 3 mainline train stations, including Crawley (town centre), Three Bridges and Gatwick Airport providing direct services to London Bridge and London Victoria in 30 minutes. The Gatwick Diamond

4 Units 1a, b & c, The Drive, Gatwick Road, Crawley, West Sussex Situation The property occupies an extremely prominent position fronting a major roundabout at the junction of Gatwick Road and Fleming Way in the heart of the Manor Royal Business District The Manor Royal Business District is one the of the largest business parks in the South East. It covers an area of 240 hectares and is home to approximately 500 businesses and 30,000 jobs. It is the focus of the retail motor trade in the town with Mercedes, Citroen, Vauxhall, Kia, Mitsubishi, Hyundai, Toyota, Jaguar, Land Rover and Ford all having representation. The location of the subject property will be further enhanced as the premier motor trade location by the development of phase 2 of The Drive on expiry of the lease on the adjoining Eezehaul Unit in Garage arage PRIESTLEY WAY F L E M I N G W A Y Platinum House G2 PRIESTLEY WAY Shelter 2 1 Raleigh Court 15 Explorer 2 El Sub Sta 8 Discovery Park Magellan Terrace Computacenter House Magellan Terrace G A T W I C K R O A D El Sub Sta 10 8 Forge Wood Industrial Estate 7 Forge Wood Warehouse Ramp Depot Tank Tank El Sub Sta Tank W LBs El Sub Sta F2 THE DRIVE El Sub Sta G A T W I C K R O A D 66.4m Tank

5 Units 1a, b & c, The Drive, Gatwick Road, Crawley, West Sussex Unit 1 The Drive MANOR ROYAL

6 Units 1a, b & c, The Drive, Gatwick Road, Crawley, West Sussex Description The property was stripped back to the frame and rebuilt in 2008 to provide a high quality motor trade facility divided into 3 units and comprising 5,078.2 sq.m. (54,622sq.ft.) on a site of approximately 3 acres. Unit 1a was fully fitted by the landlord to provide a bespoke two storey car dealership facility for Volkswagen comprising 3,259.5 sq.m. (35,086 sq.ft.) which includes an internal parking deck of sq.m. (8,366 sq.ft.) providing 36 car spaces. The unit also benefits from 148 external car spaces. Excluding the internal parking deck area the unit comprises 2,482.3 sq.m. (26,720 sq.ft.) with 184 car spaces a ratio of 1:145. Units1b and 1c were constructed to a shell and core finish and designed to allow maximum flexibility. Each has a glazed frontage and return frontage, an eaves height of 7.24 metres (23 ft 9ins) and could accommodate either a dual or two single franchises in the future. Unit 1c is currently being used as a B8 and trade counter facility by Euro Car Parts.

7 Units 1a, b & c, The Drive, Gatwick Road, Crawley, West Sussex Accommodation Unit 1a sq.m (GIA) sq,ft. (GIA) Ground Floor Showroom ,067 Workshop ,699 Workshop Control Sales Office Parts ,125 Ancillary First Floor Showroom ,876 Office Parts Mezzanine Ancillary ,642 Car Deck ,366 3, ,086 Total excluding car deck 2, ,720 External Display Parking 70 spaces Customer/Service Parking 78 spaces Internal Car Deck 36 spaces Unit 1b Ground Floor Showroom 1, ,541 Parking 110 spaces Unit 1c Ground Floor Warehouse ,035 Parking 13 spaces Total Area including car deck ,662 Total Area excluding car deck ,296

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9 Units 1a, b & c, The Drive, Gatwick Road, Crawley, West Sussex Tenure Freehold Tenancies The property is let in accordance with the tenancy schedule below. Unit Tenant Floor Area sq.m (sq.ft) Lease Term Rent PA Rent PSF Rent Reviews Comments 1a Volkswagen Group *2, years from 350, yearly The first review is to the higher of open market value United Kingdom Limited *(26,720) 28th March 2008 assuming a fully fitted unit or 395,993pa ( 14.82psf). Subsequent reviews are to open market value. VW operate the unit through Motorline (Kent) Ltd, one of their authorised dealers, by way of a subletting on similar terms but outside the protection of the Landlord and Tenant Act b Vacant 1, , Vendor will provide a rent, rates and service charge (13,541) guarantee for 2 years from completion. 1c Euro Car Parts Limited years from 60, yearly The first review is subject to a fixed increase to 69,962pa (6,035) 7th January 2010 ( 11.59psf). The subsequent review is to the higher of open market value or a fixed increase based on 2% per annum compound growth. The tenant has an option to break in the 10th year subject to 12 months notice. 585,350 All leases are drawn on full repairing and insuring terms * Excludes internal parking deck

10 UNITS 1a, 1b, 1c 1a 1b 1c Phase 2 to be developed 2014

11 Phase 2 to be developed 2014 VW

12 TO BE LET Phase 2 to be developed 2014

13 EURO CAR PARTS Phase 2 to be developed 2014

14 Units 1a, b & c, The Drive, Gatwick Road, Crawley, West Sussex Covenant Information Volkswagen is Europe s largest car manufacturer and Volkswagen Group United Kingdom Limited is regarded as the best covenant in the UK automotive and roadside sector with a Dun & Bradstreet rating of 5A1. For the financial year ending 31st December 2008 it had a profit of 65.5m and a net worth of 767.5m. Euro Car Parts is the UK s largest distributor of parts and garage equipment for cars and light commercial vehicles to UK garages. It has over 70 branches and employs more than 2,000 people in over 45 different towns and cities across the UK. For the financial year ending 31st December 2008 Euro Car Parts Limited had a profit of 6.63m and a net worth of 20.46m and a Dun & Bradstreet rating of 4A1. Planning Planning permission was granted for the redevelopment of unit 1 to accommodate 2 car dealerships including servicing, workshop, maintenance and preparation areas on 3rd April Subsequent permission was granted on 3rd November 2009 for the subdivision of Unit 1b (now 1b and 1c) and change of use for Unit 1c to Class B8 (storage and distribution) with ancillary trade counter and erection of mezzanine. The trade counter use is restricted to 6% of the ground floor and 3% of the whole building. It is the intention of the vendor to develop the adjoining site for a further 6,968 sq.m. (75,000 sq.ft) of motor trade accommodation on expiry of the existing Eezehaul lease in This site has an existing planning permission for motor trade use.

15 Units 1a, b & c, The Drive, Gatwick Road, Crawley, West Sussex Capital Allowances There will be no capital allowances available to the purchaser. VAT The Property is elected for VAT Proposal We are instructed to seek a price of 8,500,000 (eight million five hundred thousand pounds) for the freehold interest subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 6.51% rising to 7.02% in March 2013, 7.13% in January 2015 and net equivalent and true net equivalent yields of 7.05% and 7.36% respectively after purchaser s costs of 5.75% This represents a capital value for the vacant unit of approximately 130 psf and 22% of the purchase price.

16 Chartered Surveyors 76 New Bond Street London W1S 1RX Misrepresentation Act: Messrs John Miles & Company (Investments Surveyors) Ltd for themselves and for the vendors or lessors of this property whose agents they are give notice that (i) the particulars are set out as a general outline for the guidance of the intending purchasers and do not constitute part of an offer or contract; (ii) all descriptions, dimensions, references to condition and necessary permissions for use and occupation and other details are given without responsibility and any intending purchasers 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; (iii) no person in the employment of John Miles & Company (Investment Surveyors) Ltd has any authority to make or give any representation or warranty whatever in relation to this property. March 2010 Further information For further information or to arrange a viewing, contact: Lawrence Gluckstein Direct Line: lg@johnmilesco.com Neil Edwards Direct Line: neil@johnmilesco.com