B&M, HOME BARGAINS & THE GYM

B&M, HOME BARGAINS & THE GYM LIVERPOOL GREAT HOMER STREET

INVESTMENT SUMMARY The property comprises 4 newly constructed, purpose built retail warehousing units. Positioned 1.5 miles north of Liverpool city centre within the 150million regeneration area of Great Homer Street. Highly prominent location, with 9.7 million vehicles passing annually, opposite a newly developed Sainsbury s supermarket and district centre accommodation. The property totals 63,926 sq ft and is arranged as two distinct elements with demised surface car parking. Let to B&M, Home Bargains and The Gym Group. WAULT of 12.16 years to expiry (10.17 years to break). Total passing rent of 705,604 per annum, once fully let and income producing. Long Leasehold (250 years). Offers sought in excess of 10,160,000 reflecting a net initial yield of 6.50%. Subject to contract and exclusive of VAT. Yields are net of purchaser s costs of 6.70%.

B&M, HOME BARGAINS & THE GYM, LIVERPOOL, L5 5BT 3 LOCATION & COMMUNICATIONS Liverpool is a major city in north west England with a population of 480,000. The city and its surrounding areas form the fifth largest metropolitan area in the UK, with an estimated population of over 2.24 million. The city is located 35 miles (56 km) west of Manchester, 55 miles (88 km) south of Blackpool and 98 miles (157 km) north west of Birmingham. The Mersey Estuary separates Liverpool from the Wirral Peninsula. COMMUNICATIONS Liverpool benefits from excellent transport infrastructure, primarily centred on the city s highly developed road and rail networks, both of which are extensive and provide links across the UK. A55 A494 A583 A565 A59 A565 A5209 A561 A562 A41 A550 A494 A55 A483 A585 LIVERPOOL M53 M55 M58 A570 A580 CHESTER A534 A41 M6 A58 A51 A49 BLACKBURN M61 WIGAN A56 M56 A49 A54 A556 M65 A58 A666 M62 A580 A57 A530 A560 CREWE A58 A534 A56 A537 M6 M66 M60 A54 A34 A34 A34 A646 M60 A6 A52 A6066 A627 MANCHESTER A6 A537 M62 STOKE -ON-TRENT A53 BRADFORD A6 Huddersfield M606 LEEDS M1 M621 M1 SHEFFIELD M1 M62 M18 A1(M) NOTTINGHAM ROAD Liverpool is served by the M62, M58 and M57 motorways which connect the city to Manchester, Leeds, Bradford and Hull. The M6, approximately 12 miles to the east, and M1 are also both easily accessible. RAIL The city s primary mainline station is Liverpool Lime Street station, which provides a regular service to London Euston (2 hours 5 minutes), Manchester (32 minutes), Birmingham, Newcastleupon-Tyne, Leeds and Nottingham. The Merseyrail Loop system connects Liverpool to the Merseyside suburbs, the Wirral and Chester. BUS The two principal bus terminals are Queen Square bus station, providing routes north and east of the city, and Liverpool One bus station, providing services to the south and east. AIR Liverpool John Lennon Airport is approximately 6 miles (9.6 km) to the south of the city centre and is one of the UK s fastest growing regional airports with 5.3 million passengers annually. Manchester Airport is also 35 miles (55 km) to the east of the city. FERRY The Port of Liverpool acts as the Global Logistics Hub for Northern UK & Ireland and is the largest west coast container port, offering air freight opportunities through Liverpool John Lennon Airport.

LIVERPOOL Liverpool is the 6th largest city in the UK and the country s largest economic region outside of London and the South East. B&M, HOME BARGAINS & THE GYM, LIVERPOOL, L5 5BT 4 Historically, Liverpool s economy focused around the port, which was at one point the largest international port in the world. The port is currently undergoing one of the most ambitious regeneration projects in the UK and remains a focus of, and significant driver behind, the city s economy. The long term vision for Liverpool Waters is to transform the northern docks, regenerating 60 hectares of historic dockland to create a worldclass, high quality, mixed-use waterfront quarter. Liverpool2, another ongoing development at the Port of Liverpool, has seen 400 million invested into the creation of a deep-water container, that once complete will act as one of Europe s most advanced container terminals. Liverpool and the surrounding region is the number one recipient of foreign investment in the UK after London and the South East. Liverpool is set to benefit from some of the UK s largest development and infrastructure projects. Over the next decade Liverpool is set to benefit from some of the UK s largest development and infrastructure projects including Pall Mall (a 90m Gateway Project); New Royal Liverpool University Hospital; Alder Hey Children s Hospital and Liverpool University s Bio Innovation Campus. The city is the third largest wealth management centre in the UK and home to a number of major financial institutions, public bodies and manufacturing and service sector employers, such as; HM Revenue & Customs, the UK Border Agency, Barclaycard, Sony, Deutsche Bank, Jaguar Land Rover, Unilever and Ford. Additionally, Liverpool is a former European Capital of Culture (2008) and benefits from a substantial tourism, sporting and cultural economy. The city s principal attractions include Liverpool and Everton football clubs; the Grade II Listed Albert Dock; the Three Graces (UNESCO World Heritage Site); Echo Arena; Royal Liverpool Philharmonic; The Grand National; Tate Liverpool; and the largest Anglican Cathedral in the world; all contributing to an estimated 3.8bn to the economy each year. The city is also home to four universities; The University of Liverpool, Liverpool John Moore s University, Liverpool Hope University and Sir Paul McCartney s Liverpool Institute of Performing Arts; producing around 18,000 graduates each year and an annual student population of approximately 50,000.

CATCHMENT & SOCIO-ECONOMIC ANALYSIS A565 WATERLOO FORD LITHERLAND A5036 A59 M57 KNOWSLEY INDUSTRIAL PARK Liverpool is the principal retail centre in Merseyside and the second largest city in the north west of England. ORRELL PARK A580 CROXTETH B&M, HOME BARGAINS & THE GYM, LIVERPOOL, L5 5BT 5 Liverpool s primary catchment area comprises 1,117,000 people, with an estimated shopping population of 704,000, ranking it 4th of the UK PROMIS Centres (March 2018). The city has the 8th largest annual retail spend in the UK, with a significant amount generated through tourism. In 2014, Liverpool was the 6th most visited city in the UK for international visitors and 5th in England for domestic visitors. Liverpool s tourism industry now supports over 49,000 jobs, giving an overall tourism value of 4.1bn to the local economy (STREAM 2015). Retail spend in the city is complimented by a large student population across Liverpool s four universities. As such, the cities age profile reflects a high proportion of young adults aged 15-24. Liverpool and the surrounding region is the number one recipient of foreign direct investment in the UK, outside of London and the South East, contributing to an economic renaissance over the past 15 years which has returned the city to prosperity and provided a strong base for future growth. MORETON M53 UPTON A554 WALLASEY A5139 A554 A552 PRENTON A565 A5058 MILLERS BRIDGE INDUSTRIAL ESTATE KIRKDALE CLUBMOOR A5089 ANFIELD EVERTON A565 A5053 FAIRFIELD KENSINGTON SEFTON PARK OTTERSPOOL A561 A5058 A5047 M57 BROADGREEN BOWRING PARK CHILDWALL STOCKBRIDGE VILLAGE M62 KNOWSLEY Drive Time (mins) 5 10 Population 23,414 160,112 No. of Households 10,468 73,422 LIVERPOOL S VISITOR ECONOMY SUPPORTS OVER 49,000 JOBS & GENERATES IN EXCESS OF 4.1BN 15 451,366 202,336 (STREAM 2015)

B&M, HOME BARGAINS & THE GYM, LIVERPOOL, L5 5BT 6 GREAT HOMER STREET The Great Homer Street development, known as Project Jennifer, is located 1.5 miles north of Liverpool city centre, between Great Homer Street and Scotland Road (A59) a major route into the city centre with an estimated 26,600 vehicles passing daily. The 150 million regeneration of Great Homer Street spans 45 acres and will create a new hub of activity in North Liverpool acting as a catalyst for wider redevelopment. A new 65,000 sq ft Sainsbury s foodstore, situated adjacent to the subject property opened in June 2017. The Great Homer Street Development includes: A new 65,000 sq ft Sainsbury s supermarket and petrol station (situated directly opposite). New district centre accommodation let to Greggs, Costa, Domino s, Rowlands Pharmacy, Barnado s and Extra Care. A total of 900 customer car parking spaces. A new home for Great Homer Street s famous Greatie Market which opened in September 2013. Improvements to local roads including a new link road Jennifer Avenue and junction between Great Homer Street and Scotland Road. New homes Marwood Tower has been refurbished and completed in September 2016. Improvements to the public realm. Health facilities. Improved pedestrian walkway from the district centre to Everton Park. 9.7 million vehicles pass the site each year.

SITUATION Regent Rd A5052 A5054 Latimer St GREAT HOMER STREET DEVELOPMENT A59 Great Homer St A5050 EVERTON Hamilton Rd Great Homer Street is located 1.5 miles north of Liverpool city centre, between Great Homer Street and Scotland Road (A59) a major route into the city centre. The property benefits from a highly prominent location, with an estimated 26,600 vehicles passing each day. St Howard Great Love Ln VAUXHALL Green St Limekiln Ln Scotland Rd Prince Edwin St Brow Everton Everton Rd Rd Breck Queens Rd Brighton St Shaw St Kingsway Tunnel Rd Waterloo Pall Mall A5053 A59 St Anne St Low Hill Prescot St Princes Princes Parade 7 A554 RIVER MERSEY Queensway Tunnel LIVERPOOL St Strand JAMES STREET STATION LIVERPOOL CENTRAL STATION ROPEWALKS A561 LIVERPOOL LIME STREET STATION A5038 Duke St Brownlow Hill UNIVERSITY OF LIVERPOOL A5039 Grove St

Liverpool University Hospital Sainsbury s Store Notre Dame Catholic College District Centre Accommodation Liverpool Waterfront Moorfields Station Prince s Dock Liverpool Metropolitan Cathedral Liverpool Lime Street Station James Street Station Marwood Triangle Development

St Anthony s Church Scotland Road (A59) THE PROPERTY DESCRIPTION The property forms part of the Great Homer Street development and comprises new, multi-let retail accommodation. Wilcock Close PFS B&M, HOME BARGAINS & THE GYM, LIVERPOOL, L5 5BT 9 The property is situated adjacent to a 65,000 sq ft GIA Sainsbury s store arranged over ground floor with demised surface car parking for 650 vehicles. The store opened in June 2017 and has acted as a significant draw to the surrounding retail accommodation and wider location. In addition, McDonald s have opened a new drive-thru and KFC are in the process of receiving planning for their site nearby. BLOCK A Block A comprises two retail warehouse units, totalling 16,126 sq ft, arranged over ground floor. Unit 1 comprises 10,036 sq ft and is let to The Gym Group, and Unit 2 comprises 6,090 sq ft. BLOCK B Block B comprises standalone retail accommodation split across two retail units. Unit 1 comprises 22,116 sq ft and is let to Home Bargains. Unit 2 comprises 25,684 sq ft plus garden centre and is let to B&M Retail. Penrhyn Street Chapel Gardens Great Homer Street Unit 2 Buckingham Street Rowlands Pharmacy Jennifer Way Notre Dame School Blocks A & B combined have a total of 250 car parking spaces. Everton Leisure Centre Block A Block B

MODERN PURPOSE BUILT RETAIL WAREHOUSE ACCOMMODATION B&M, HOME BARGAINS & THE GYM, LIVERPOOL, L5 5BT 10 Great Homer Street Block A Block B Title plan - for indicative purposes only.

TENANCY The property is let in accordance with the tenancy schedule outlined below. Unit Company Name Trading As Area (sq ft) Lease Start Lease Term Tenant Break Option Rent (per annum) Rent (psf ) Incentives (months) Comments B&M, HOME BARGAINS & THE GYM, LIVERPOOL, L5 5BT Block B Block A Total 1 The Gym Group The Gym 10,036 07/08/2017 15 130,000 13.00 6 Store area documented at 10,000 sq ft. Exclusivity period until lease expires. Fixed rental increase at year 5 and 10, at 143,000 pa and 157,300 per annum respectively. This represent a 10% fixed increase every 5 years. 2 TBC TBC 6,090 73,080 12.00 Rental guarantee of 12 months 1 TJ Morris Limited Home Bargains 22,116 08/09/2017 15 Year 10 then annually thereafter 220,000 9.95 18 2 B&M Retail Limited B&M 25,684 11/09/2017 10 282,524 11.00 12 63,926 705,604 Once fully let the property will provide an estimated total passing rent of 705,604 per annum which reflects an average rent of 11.03 psf. The Gym benefits from fixed rental uplifts in year 5 and 10, with the next uplift due in 2022. The scheme benefits from a WAULT of 12.16 years to lease expiry and 10.17 years to tenant break. TENURE Long Leasehold (250 years at a peppercorn). OMR review at years 5 and 10, subject to cap at 2% per annum compound The unit benefits from a 5,000 sq ft garden centre which is not rentalised 11 Once fully let the property will provide an estimated total passing rent of 705,604 per annum, rising to 718,604 per annum in 2022.

COVENANT ASSESSMENT The tenants have been analysed as below. B&M, HOME BARGAINS & THE GYM, LIVERPOOL, L5 5BT 12 B&M RETAIL LIMITED B&M Retail Limited (company number 01357507) was formed in 1978 and is now one of the leading variety retailers in the UK. The company sells a wide range of goods including homewares, children s toys, food, drink, toiletries and pet products. In March 2016 the business opened its 500th store and employs a total of 22,500 staff across the UK. The company successfully listed on the London Stock Exchange in 2014 which helped to fund its continued expansion. B&M Retail Limited has a Dun & Bradstreet rating of 5A1 representing a minimum risk of business failure. The most recent company accounts are set out below: Y/E Y/E 25/03/2017, 000 Y/E 26/03/2016, 000 Y/E 28/03/2015, 000 Sales Turnover 2,252,265 1,902,557 1,526,181 Pre-Tax Profit 198,006 168,121 151,063 Net Worth 498,412 440,372 333,599 HOME BARGAINS Home Bargains is a chain of discount stores founded in 1976 in Liverpool. It is the trading name of TJ Morris Ltd and stocks up to 4,000 product lines and employs over 17,000 people. In 2013 the company estimated that they served over 3 million customers and published a record breaking turnover of 1 billion which was subsequently increased by 50% just 3 years later in 2016. B&M Retail Limited has a Dun & Bradstreet rating of 5A1 representing a minimum risk of business failure. The most recent company accounts are set out below: Y/E Y/E 30/06/2017 Y/E 30/06/2016 Y/E 30/06/2015 Sales Turnover 1,869,198,381 1,602,864,617 1,472,432,312 Pre-Tax Profit 168,226,007 136,993,560 147,121,171 Net Worth 747,814,458 614,799,646 547,987,397 THE GYM GROUP The Gym Group was founded in 2007 with the vision to provide high quality, affordable gym facilities. At the start of 2016 the company had amassed 448,000 members, spread across 89 locations. The company opened 15 new gyms in 2016, with 17 having been exchanged for 2017. The most recent company accounts are set out below: Y/E Y/E 31/12/2017, 000 Y/E 31/12/2016, 000 Y/E 31/12/2015, 000 Sales Turnover 91,337 73,539 59,979 Pre-Tax Profit 9,191 6,940 (12,382) Net Worth 58,818 65,573 59,306

PLANNING Further details are available upon request. Block A Unit 2 (17F/1166) benefits from planning consent for use as a gym (use class D2). B&M, HOME BARGAINS & THE GYM, LIVERPOOL, L5 5BT 13 ENVIRONMENTAL INFORMATION A land quality statement has been prepared by Atkins and is available upon request. EPC The Energy Performance Certificates for the property can be obtained upon request. VAT This property has been elected for VAT purposes and it is expected that the investment sale will be treated as a Transfer of a Going Concern (TOGC).

Offers sought in excess of 10,160,000 reflecting a net initial yield of 6.50%. Subject to contract and exclusive of VAT. Yields are net of purchaser s costs of 6.70%. TOM EDSON 020 7344 6554 tom.edson@colliers.com GEORGIE GRIFFITHS Colliers International 50 George Street London W1U 7GA www.colliers.com/uk 020 7344 6611 georgie.griffiths@colliers.com GREG STYLES 0113 200 1818 greg.styles@colliers.com Disclaimer: Colliers 2018 Colliers International gives 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. (March 2018) Colliers International is the licensed trading name of Colliers International Retail UK LLP which is a limited liability partnership registered in England and Wales with registered number OC334835. Our registered office is at 50 George Street, London W1U 7GA. March 2018 Ref: 15220.002