BRIDGE OF DON RETAIL PARK DENMORE ROAD, ABERDEEN FOR SALE PRIME RETAIL PARK INVESTMENT

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1 DENMORE ROAD, FOR SALE PRIME INVESTMENT

2 INVESTMENT SUMMARY 1,150,740 Opportunity to acquire a prime retail park investment in Aberdeen The retail park benefits from unrestricted Class 1 retail consent Located in the affluent Aberdeen suburb, Bridge of Don Bridge of Don is one of the largest areas of housing expansion in Aberdeen Total passing rent per annum Future asset management opportunities 83.33% 17M of Tenants hold a 5A1 D&B Rating WAULT to expiry years to break 11.5 years Comprehensive refurbishment programme completed in of the 6 leases commenced in 2017 following refurbishment Strong rental growth prospects Attractive lot size Tenants WE ARE INSTRUCTED TO SEEK OFFERS IN EXCESS OF 17,000,000 EXCLUSIVE OF VAT, FOR OUR CLIENT S HERITABLE INTEREST SUBJECT TO AND WITH THE BENEFIT OF THE EXISTING LEASES. A PURCHASE AT THIS LEVEL WOULD REFLECT AN ATTRACTIVE NET INITIAL YIELD OF 6.37% AFTER ALLOWING FOR PURCHASERS COSTS OF 6.28%

3 LOCATION A82 INVERNESS A9 A95 AIRPORT IS SCOTLAND S THIRD LARGEST CITY AND THE ADMINISTRATIVE CENTRE FOR THE NORTH EAST OF SCOTLAND. The city is also considered the oil capital of Europe, being the major centre for North Sea oil and gas related activities. The population of Aberdeen city is approximately 223,000 people with a wider catchment population of approximately 445,000 people. A82 A86 A9 A93 MONTROSE A12 Located some 105 miles to the north of Edinburgh and 100 miles to the east of Inverness, Aberdeen benefits from excellent communication links. By road, the links Aberdeen to the national motorway network, providing access to Glasgow and Edinburgh, whilst the provides access to Inverness and the north west of Scotland. The Aberdeen western peripheral route is currently under construction, which will provide a new city by-pass, completion of the project is scheduled for late A82 A84 A85 A9 A9 PERTH DUNDEE Aberdeen is one of the most prosperous cities in the UK and is consistently rated highly for its quality of life, given its status as a global centre of excellence in both the oil and renewable industry sectors. Aberdeen has 4% of Scotland s total population and this is projected to increase to in excess of 271,000 people by 2035, an increase of 20%. It is also home to 28 of Scotland s top 100 companies and has average earnings that are 21% above the Scottish national average. M90 M9 GLASGOW M77 M74 M8 M9 EDINBURGH A7 BERWICK-UPON-TWEED Aberdeen has a wider catchment of approx 445,000 people Home to 28 of Scotland s top 100 companies * Average earnings are 9.5% above Scottish national average *Source Aberdeen City Council / ONS Annual Survey of Hours and Earnings.

4 SITUATION KINGSEAT WHITECAIRN TRUMP INTERNATIONAL GOLF LINKS RESORT IS A DENSELY POPULATED AFFLUENT SETTLEMENT TO THE NORTH OF WHERE THERE ARE APPROXIMATELY 20,000 PEOPLE WITHIN THE ELECTORAL WARD. NEWMACHAR GOLF CLUB A947 B997 B999 B997 BELHEVIE POTTERTON BALMEDIE BALMEDIE COUNTRY PARK MILLDEN The provides the principal road access to Bridge of Don, however the new Aberdeen Western Peripheral Route will link with the existing at Blackdog, just to the north of Bridge of Don, further improving access from the south of Aberdeen. Bridge of Don is one of the largest areas of proposed housing expansion within Aberdeen and it is projected that there will be approximately 1,000 new residential dwellings delivered under the duration of the current local plan up to One of the major areas of redevelopment is the current Aberdeen Exhibition & Conference Centre site which is relocating to a new facility at Dyce, some 6 miles to the west. Current proposals for the site are to deliver a new urban environment which would incorporate approximately 350 new residential units, a neighbourhood centre, hotels, commercial and business space as well as a new park and ride facility. Given the excellent access afforded to the site via the, Bridge of Don also provides access to the Aberdeenshire settlements of Blackdog, Balmedie, Pitmedden and Ellon. The Trump International Golf Links Resort is located at Balmedie, some 6 miles to the north of Bridge of Don. Bridge of Don Retail Park occupies a prominent position adjacent to the (Ellon Road) and is accessed via a major roundabout providing access to the B999. WESTERN PERIPHERAL ROUTE FAIRLEY AIRPORT GOVAL A947 DYCE A947 RIVER DON NEW EXHIBITION & CONFERENCE CENTRE BUCKSBURN GRANDHOME WESTERN PERIPHERAL ROUTE NORTHFIELD MASTRICK B997 A944 THE PARKWAY B997 B999 MIDDLETON PARK HAYTON KITTYBREWSTER MUNDURNO B999 CLOVERHILL KING STREET A956 MURCAR LINKS GOLF CLUB ROYAL GOLF CLUB EXISTING EXHIBITION & CONFERENCE CENTRE ELLON ROAD OLD BLACKDOG KINGS LINKS GOLF CLUB New Aberdeen Western Peripheral Route will link to the at Blackdog A new urban environment is coming to Aberdeen Exhibition & Conference centre 1,000 New residential dwellings by 2025 Trump International Golf Resort is only 6 miles north

5 AERIAL AECC MIXED USE REDEVELOPMENT AND NEW PARK AND RIDE INDUSTRIAL ESTATE CITY CENTRE LEISURE BUSINESS AND INDUSTRIAL LAND ALLOCATION DENMORE INDUSTRIAL ESTATE ELLON ROAD DENMORE ROAD NORTH AIRPORT

6 DESCRIPTION EXTENDS TO 81,921 SQ FT (7, SQ M) AND IS PRINCIPALLY FORMED OF TWO DISTINCT WAREHOUSE TERRACES AND A STAND-ALONE COSTA COFFEE DRIVE-THRU UNIT. CAR PARK DRIVE-THRU ELLON ROAD () CAR PARK The Park benefits from 272 customer car parking spaces and the two retail terraces have dedicated service yards. The north terrace is of portal steel frame construction and is sub-divided into four units. CAR PARK This terrace was recently refurbished and completed in October 2017, including re-cladding of all external walls, roof replacement, new shop-fronts, extended service yard area and increased customer car parking provision. Directly opposite lies the south terrace, let in its entirety to B&Q and this is also of portal steel frame construction. CAR PARK CAR PARK DENMORE ROAD ,921 sq ft Car parking spaces Dedicated service yards Refurbished October 2017

7 RETAIL WAREHOUSE PROVISION WITHIN In addition to Bridge of Don Retail Park, Aberdeen has the following retail warehouse schemes, whose locations are shown on the plan: B BERRYDEN / CENTREPOINT Although under separate ownership, these two parks lie immediately adjacent to each other and are effectively linked together. Berryden comprises approximately 74,293 sq ft of accommodation let to Next, Argos, Mothercare and Currys. Top rents stand at approximately per sq ft. Centrepoint, which extends to approximately 95,500 sq ft is anchored by a Sainsbury s foodstore, Mecca Bingo, Poundland, Harry Corry, Furniture Mountain and also a former Toys R Us unit. The headline rent stands at approximately per sq ft. 2. BOULEVARD Boulevard comprises approximately 225,212 sq ft of retail warehousing accommodation, anchored by an 85,000 sq ft Asda foodstore. Additional tenants include Pets at Home, Pagazzi, Smyths Toys, Home Bargains, Wren Kitchens, Iceland, DW Fitness, Aldi and Dunelm. Headline rents are approximately per sq ft. 3. KITTYBREWSTER Kittybrewster extends to approximately 154,078 sq ft of retail warehouse accommodation across 13 units. Occupiers within the park are Carpetright, Halfords, Oak Furniture Land, Staples, Tapi, SCS, TK Maxx, B&M, Harveys, Sports Direct, DFS, PureGym and McDonald s. Headline rents on the park are approximately per sq ft. 4. GARTHDEE Garthdee comprises approximately 25,000 sq ft of retail warehouse accommodation let to Boots and Currys/PC World, however there is also a 90,000 sq ft B&Q that lies adjacent to the site in addition to large format Asda and Sainsbury s foodstores. Headline rents at Garthdee are approximately 30 per sq ft. 5. UNION SQUARE To the rear of Hammerson s Union Square Shopping Centre development in the city centre, there are a number of larger retail warehouse style units fronting the car park. These are let to predominantly fashion tenants, including Next, Outfit, M&S, Superdry and JD Sports. Headline rents stand at approximately 35 per sq ft. AIRPORT A947 RIVER DON A944 BERRYDEN / CENTREPOINT A944 A B997 B9077 UNION SQUARE A956 KITTYBREWSTER 5 RIVER DEE BOULEVARD A956 2 GARTHDEE 4 B9077

8 TENANCY & ACCOMMODATION TENANT RENT RATE AREA (SQ FT) START EXPIRY UNEXPIRED TERM (YRS) NEXT REVIEW BREAK COMMENTS B&Q plc 420, ,998 09/10/ /12/ /12/ Marks & Spencer plc 203, ,985 25/10/ /10/ /10/ Rent is capped at 463,714 pa at review. 5,000 sq ft mezzanine floor which is not rentalised. 5 yearly reviews to lower of OMV or passing rent x Carpetright plc 133, ,827 01/11/ /10/ /11/ yearly reviews to OMV. Pets at Home Ltd 133, ,850 20/11/ /11/ /11/ /11/2027 (T) 5 yearly reviews to OMV. TJ Morris Ltd t/a Home Bargains 200, ,387 06/11/ /11/ /11/ Costa Ltd 60, ,874 25/10/ /10/ /10/ /10/2027 (T) 5 yearly reviews to lower of OMV or 2% pa compounded. Service Charge cap at 13,387 for the first year and indexed linked to RPI thereafter. 5 yearly reviews to lower of OMV or passing rent x Service Charge capped at 2, and index linked to RPI thereafter. Scottish Hydro Electric /08/ /08/ ,150,740 81,921

9 INCOME ANALYSIS INCOME PROFILE Costa Ltd UNEXPIRED TERM PROFILE 0-5 Years (0%) TJ Morris Ltd t/a Home Bargains 17.5% 5.1% B&Q plc Years 16.6% 16.6% 5-10 Years 36.5% Pets at Home Ltd 11.6% 66.8% Carpetright plc 11.6% 17.7% Marks & Spencer plc Years Wault to expiry of Years. / Wault to break 11.5 Years. COVENANT INFORMATION UNIT NAME TENANT D&B RATING YEAR END SALES TURNOVER NET PROFIT TANGIBLE NET WORTH Unit 1 B&Q plc 5A1 31/01/2017 3,582,800, ,300,000 4,647,200,000 Unit 2 Marks & Spencer plc 5A1 01/04/ ,622,000,000 71,500,000 4,961,200,000 Unit 4 Carpetright plc 4A4 29/04/ ,600, ,000 20,700,000 Unit 3 Pets at Home Ltd 5A1 30/03/ ,374,000 53,744, ,186,000 Unit 5 TJ Morris Ltd t/a Home Bargains 5A1 30/06/2017 1,869,198, ,014, ,814,458 Unit 6 & 2 Car Spaces Costa Ltd 5A1 02/03/ ,366,000 78,639, ,894,000 Substation Scottish Hydro Electric

10 GALLERY

11 OTHER INFORMATION TENURE The property is held on a heritable title (Scottish equivalent of English freehold). PLANNING Bridge of Don Retail Park benefits from unrestricted Class 1 retail consent across the entire park. Further information can be provided on request. EPC S Copies of all EPC s are available on request. LEGAL COSTS Each party will be responsible for their own legal costs incurred in connection with the transaction. VAT Our clients have elected to waive exemption for VAT and accordingly VAT will be payable on the purchase price, although we anticipate the sale will be dealt with by way of a Transfer of a Going Concern (TOGC). PROPOSAL We are instructed to seek offers in excess of 17,000,000 [SEVENTEEN MILLION POUNDS] STERLING, exclusive of VAT for the heritable interest subject to and with the benefit of the existing Leases. A purchase at this level would reflect an attractive Net Initial Yield of 6.37% after allowing for purchasers costs of 6.28%.

12 VIEWING & FURTHER INFORMATION SHERIDAN PROPERTY CONSULTANTS Stewart Sheridan Cathal Keane Noel Tiffney COATES & CO Alasdair Coates Mark Dawson coatesandco.net sheridanproperty.co.uk Sheridan Property Consultants/Coates & Co for themselves and for the vendors or lessors of this property whose agents they are given notice that: (i) 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; (ii) all descriptions, reference to condition and necessary permission for use and occupation, and other details are given without responsibility and 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 and are advised to do so; (iii) no person in the employment of Sheridan Property Consultants/Coates & Co has any authority to give representation or warranty whatever in relation to this property; (iv) all prices, rents and premiums quoted are exclusive of VAT at current rate; September Siren +44 (0) sirendesign.co.uk S010475