98 CLAPHAM ROAD BEDFORD MK41 7PJ NEW ALDI SUPERMARKET WITH 21 YEAR LEASE & RPI-LINKED REVIEWS

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1 98 CLAPHAM ROAD BEDFORD MK41 7PJ NEW ALDI SUPERMARKET WITH 21 YEAR LEASE & RPI-LINKED REVIEWS >

2 CGI: For illustrative purposes only INVESTMENT CONSIDERATIONS New supermarket with practical completion due April 2018 Let to Aldi Stores Limited on a 21-year FRI lease commencing 31 March 2017 (20 years unexpired) Rent is subject to 5-yearly upward only RPI rent reviews, compounded annually and collared and capped at 1%-3% Strategically located with highly prominent frontage to busy arterial roads GIA of 20,927 sq ft (1,944 sq m) with the benefit of 113 demised car parking spaces (1:185 sq ft ratio) Current contracted rent of 372, per annum, reflecting psf PROPOSAL OFFERS SOUGHT IN EXCESS OF 7,355,000 reflecting a Net Initial Yield of 4.75% and an equivalent yield of 6.82% subject to contract and exclusive of VAT. The SPV holding company is available by negotiation. Date Rent 2.70% RPI Running Yield March , % March , % March , % March , % Yields are net of purchaser s costs of 6.66%.

3 KING S FIELD 500 UNIT RESIDENTIAL DEVELOPMENT FU TUR E T H O R O U G H FA RE 98 CLAPHAM ROAD BEDFORD MK41 7PJ O u t l i n e I n d i c a t i v e O n l y.

4 A6 A 508 NORTHAMPTON A 1 LOCATION & COMMUNICATIONS BEDFORD CAMBRIDGE Bedford is the principal commercial and retail centre of Bedfordshire and represents the administrative centre. MILTON KEYNES Located approximately 18 miles (29 km) north east of Milton Keynes, 31 miles (50 km) east of Cambridge, 21 miles (34 km) south east of Northampton and 60 miles (100 km) north of London, the town benefits from excellent communications. M1 LUTON A 10 M11 AYLESBURY A1(M) BEDFORD PARK KIMBOLTON ROAD M40 M1 M25 B660 M4 LONDON A5141 M3 CLAPH AM ROADTAVISTOCK STREET UNION ST GOLDINGTON ROAD A42 80 ST PETER S ST M&S CAR BEDFORD DEBENHAMS HARPUR SHOPPING CENTRE M1-10 miles (16 km) A3-9 miles (14 km) A5141 RIVER GREAT OUSE RUSSELL PARK RAIL London St Pancras 40 minutes ST JOHN S ST CARDINGTON ROAD KINGSWAY CARDINGTON ROAD LON GHOLME WAY AIRPORT Luton 35 minutes drive BEDFORD ST JOHNS

5 SITUATION The subject property occupies an extremely prominent position on the south side of the recently upgraded roundabout intersection of Clapham Road / Paula Radcliffe Way (A6). The intersection provides direct passage to Bedford town centre 1.2 miles (2km) to the south, in addition to convenient access to Kettering to the north via the A6, and Northampton to the east via the A4280. SHARNBROOK FELMERSHAM BLETSOE Adjoining the property is a Sainsbury s supermarket with a GIA of 79,624 sq. ft. with 450 car spaces. HARROLD DEMOGRAPHICS CARLTON PAVENHAM MILTON ERNEST Bedford has a primary catchment population of 322,000, with an estimated shopping population of 159,000, ranking the town 94 of the PROMIS centres. The town is projected to see significantly above average growth in population over the period OAKLEY CLAPHAM The catchment population is categorised as moderately affluent (source: PMA Affluence Indicator), with a significantly above average proportion of adults of working age categorised within the most affluent AB social group. MANTON INDUSTRIAL ESTATE COMPETING STORES BEDFORD The map denotes the competing foodstores (5,000+ sq ft) in the Bedford area. Notably, the closest competing discount foodstores within a 5-minute drive-time are predominantly located south of the Bedford town centre. 6,617 SQ FT* 7,339 SQ FT* CARDINGTON WILLINGTON Aldi overtook Co-Op to become Britain s fifth biggest supermarket by market share. 47,591 SQ FT* 7,339 SQ FT* WOOTTON ELSTOW SHORTSTOWN COTTON END (December The Guardian) 9,255 SQ FT* 5 MINUTES 10 MINUTES 15 MINUTES WIXAMS * denotes approximate Net Sales Area

6 DESCRIPTION The subject property is presently under construction with Practical Completion anticipated for early April Upon completion, the store will consist of a ground level purpose-built Aldi foodstore, with 113 demised surface car parking spaces. The foodstore provides convenient access via the roundabout intersection of Clapham Road and Paula Radcliffe Way (A6). Aldi last week posted a 15% rise in UK sales for December, taking total annual sales across the UK and Ireland above the 10bn mark for the first time ever. ACCOMMODATION The property benefits from the following proposed floor areas: Description Area (sq ft) Area (sq m) Ground Floor Sales 13,500 1,254 Office Area 1, Storage Area 5, Total 20,927 1,944 (January Kantar Worldpanel) Site Plan N 20,927 Clapham Road SQ FT Car Park 113 PARKING SPACES Sainsbury's Petrol Station Title Plan - for indicative purposes only

7 TENANCY The property is currently let to Aldi Stores Limited on a 21 year term from 31 March 2017 (20 years unexpired) with 5-yearly upward only RPI-linked rent reviews compounded annually, collared and capped at 1%-3%. ALDI STORES LIMITED (# ) The current contracted rent is 372, per annum, reflecting psf. At the expiry of the lease, the tenant has an option to renew for an additional term of 20 years at the higher of passing rent or OMV. TENURE Freehold under title number BD billion TOTAL ANNUAL SALES IN th LARGEST SUPERMARKET OPERATOR IN THE UK COVENANT INFORMATION Founded in 1962, Aldi is a leading global discount supermarket chain founded in Germany. The retailer operates over 10,000 stores across 18 countries, with an estimated global turnover of 43.6bn. Aldi first opened in the UK in 1990 and now has approximately 726 stores. More recently, Aldi has undertaken a significant and rapid expansion programme which has seen its market share grow by a considerable 80% since Summer 2013, with an intended 1,000 stores to be operating throughout the UK by Aldi is now the 5th largest supermarket operator in the UK by market share (6.9%), with total annual sales across the UK and Ireland recently exceeding 10bn. 80% INCREASED MARKET SHARE SINCE SUMMER ,000 STORES IN THE UK BY 2022 Y/E Y/E 31/12/ Y/E 31/12/ Y/E 31/12/ Sales Turnover 8,744,345 7,705,140 6,893,257 Pre-Tax Profit 214, , ,673 Net Worth 2,321,983 2,076,738 1,952, % MARKET SHARE Aldi continues its rapid expansion and intends to have 1,000 stores in the UK by (September BBC News)

8 VAT The property has been elected for VAT purposes and it is expected that the investment sale will be treated as a Transfer of Going Concern (TOGC). EPC An EPC for the property will be available upon practical completion of the building works. PROPOSAL OFFERS SOUGHT IN EXCESS OF 7,355,000 reflecting a Net Initial Yield of 4.75% and an equivalent yield of 6.82% subject to contract and exclusive of VAT. The SPV holding company is available by negotiation. Date Rent 2.70% RPI Running Yield March , % March , % March , % March , % Yields are net of purchaser s costs of 6.66%. FURTHER INFORMATION Andrew Marshall Andrew.Marshall@colliers.com Tim McIntosh Tim.McIntosh@colliers.com Tom Edson Tom.Edson@colliers.com Colliers International 50 George Street London W1U 7GA MISREPRESENTATION ACT DISCLAIMER Colliers International give notice that these particulars are set out as a general outline only for the guidance of intending Purchasers or Lessees and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Party 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. No person in the employment of Colliers International has any authority to make any representation or warranty whatsoever in relation to this property. Colliers International is the licensed trading name of Colliers International UK Plc. Company registered in England & Wales no Registered office: 50 George Street, London W1U 7GA. Designed and produced by Oracle Creative