24 BROAD STREET READING RG1 2BT 100% PRIME LLOYDS BANK INVESTMENT FOR A FURTHER 10 YEARS 5 MONTHS

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1 24 BROAD STREET READING RG1 2BT 100% PRIME LLOYDS BANK INVESTMENT FOR A FURTHER 10 YEARS 5 MONTHS

2 KEY INVESTMENT CRITERIA Reading is a strong regional retail centre currently undergoing significant redevelopment 100% prime, pedestrianised, retailing pitch of Broad Street opposite John Lewis, Primark and the Oracle Shopping Centre Freehold 10 years and 5 months unexpired to the undoubted covenant of Lloyds Bank plc Store recently refurbished to a high standard Passing rent of 220,000 per annum exclusive ERV of 236,000 per annum exclusive with an outstanding rent review from December 2015 Seeking offers in excess of 4,380,000 (Four Million, Three Hundred and Eighty Thousand Pounds), subject to contract and exclusive of VAT, reflecting an Initial yield of 4.75%, allowing for purchasers costs of 5.8%.

3 LOCATION Reading is the principal commercial and administrative centre in the Royal County of Berkshire, thriving off its close proximity to London. It benefits from being well connected and part of the M4 corridor, one of the UK s most important business locations. The town lies 38 miles (68 km) west of Central London, 25 miles (40 km) south of Oxford and 80 miles (129 km) east of Bristol. July 2014 saw the completion of Reading rail station s 897 million upgrade. The town has a direct and frequent train service to London with a fastest journey time of only 28 minutes. Crossrail will open in December 2019 at Reading Station which will provide a direct service to other Central London destinations including Bond Street, Liverpool Street and Canary Wharf, strengthening the towns position as a commercial hub. The town is located within easy access of Heathrow Airport, which is located 24 miles (38 km) to the east. CATCHMENT Reading has a catchment population of 692,000 ranking it 21 out of the PROMIS centres. Reading s population is predicted to grow by 14.23% by 2027 which is over 40% higher than the national average (Source: Experian). The University of Reading is also a prominent institution within the town enrolling over 17,000 students. Swindon M4 M40 Winchester Oxford Newbury Basingstoke M3 Southampton Southampton Milton Keynes M40 Maidenhead Reading Aylesbury M3 M4 Petersfield M1 Guildford Luton Heathrow A1 (M) Gatwick Crawley Stevena M25 London London City Croydon M25 SITUATION The property occupies a highly prominent, corner position, in 100% prime, pedestrianised, retail pitch on the northern side of Broad Street opposite John Lewis and the new Primark. Broad Street is a wide pedestrianised thoroughfare that runs east/west between the town s two principal managed centres, The Oracle and Broad Street Mall. The Oracle is anchored by Debenhams and House of Fraser, houses the town s main car park. The 500 million Station Hill redevelopment commenced in March 2015, which comprises 900,000 sq ft of office space, 80,000 sq ft of retail space and 130,000 sq ft of leisure space. With more employment, the demand for services and retail will increase and in conjunction with Crossrail, Reading should see strong rental growth. Reading has an affluent catchment, ranking 36 out of the PROMIS centres. This is supported by the towns proportion of socio-economic groups AB and C1 (most affluent) making up 67% of the population, whilst the national average is only 53%. (Source: Experian).

4 ITSU ORACLE SHOPPING CENTRE 50 metres Copyright and confidentiality Experian, Crown copyright and database rights OS Experian Goad Plan Created: 27/01/2016 Created By: GCW For more information on our products and services:

5 DESCRIPTION & ACCOMMODATION The attractive property is arranged over five floors. The property has been measured in accordance with the RICS Property Measurement 1st Edition and has the following Net Internal Areas: Sq ft Sq m Ground Floor 2, ITZA 1,032 units First Floor (Anc) 1, Second Floor (Anc) 1, Third Floor (Anc) Basement 1, Total 7, TENURE The property is held freehold. TENANCY The property is let in its entirety to Lloyds Bank plc on a full repairing and insuring 15 year lease expiring on 23rd June 2026 (10 years 5 months unexpired). The current rent passing is 220,000 per annum exclusive, subject to five yearly upward only rent reviews to open market value. The review with effect from the 25th December 2015 is outstanding. Lloyds Bank comprehensively re-fitted the property in October 2015 under the new corporate style, demonstrating their commitment to the premises. RENTAL ANALYSIS We have analysed the passing rent of 220,000 per annum to reflect 185 Zone A. We adopted A/20 on the 1st floor offices and ancillary space, 6.00 psf on second floor ancillary, 3.00 psf on both the third floor and basement ancillary space. We adopted a 7.50% negative allowance for the hard frontage and a 5.00% positive allowance for the return frontage down Cross Street, a cut through to Friar Street and the secondary entrance to M&S. RENTAL VALUE Broad Street Reading reached rental levels of 220 Zone A at the previous market peak. We are of the view that the subject property has a reversionary rental value of 236,000 per annum. This is in light of the most recent evidence including the Itsu letting in June 2015 of 35 Broad Street which showed a net effective of 201 Zone A. At this level the investment would show a reversionary yield of 5.10%. COVENANT Formed in 1765, Lloyds Bank plc (Company Number 2065) is a subsidiary of Lloyds Banking Group, the UK s largest financial services group focused on retail and commercial customers. Lloyds Bank is one of the UK s leading retail and commercial banks with over 11 million customers and nearly 1,300 branches across England and Wales. Please see below for a summary of the last three years of Lloyds Bank plc accounts. 31/12/2014 ( 000 s) 31/12/2013 ( 000 s) 31/12/2012 ( 000 s) Turnover 40,761,000 53,977,000 55,410,000 Profit / (Loss) Before Tax 2,289, ,000 (474,000) Tangible Net Worth 44,491,000 39,444,000 43,591,000 Net Current Assets 3,346,000 61,444,000 (309,770,000) The company has a financial strength assessed by Dun and Bradstreet of 5A1, representing a minimum risk of business failure.

6 EPC A full copy of the EPC is available upon request. VAT The property has not been elected for VAT and therefore VAT will not be payable on the purchase price. PROPOSAL Seeking offers in excess of 4,380,000 (Four Million, Three Hundred and Eighty Thousand Pounds), subject to contract and exclusive of VAT, reflecting an Initial yield of 4.75%, allowing for purchasers costs of 5.8%. FURTHER INFORMATION For further information please contact: James Pearson T: M: james.pearson@gcw.co.uk Oli Horton T: M: oliver.horton@gcw.co.uk 7-10 Chandos Street London W1G 9DQ T: F: Disclaimer - Whilst every effort has been made to ensure accuracy, no responsibility is taken for any error, omission or mis-statement in these particulars which do not constitute an offer or contract. No responsibility or warranty whatever is made or given either during negotiations or in particulars by vendor, lessor or the agent. Gooch Cunliffe Whale LLP. Registered in England No. OC Registered office: 30 City Road, London EC1Y 2AB. GCW: February 2016 Produced by Barbican Studio T: