Prime Well Let Retail Parade. Inverness 41/47 High Street

Prime Well Let Retail Parade Inverness 41/47 High Street

Investment Summary Inverness is the retail, administrative and financial capital for the Highlands & Islands. The city is the dominant shopping destination and has a catchment population of 525,700 persons, which is proposed to expand significantly. 100% prime location on the High Street. Three well laid out retail units let to Phones 4U,Tiso and Orange. Current passing rent of 318,440 per annum, with an attractive WAULT of 7 years. Location Inverness is the retail, commercial and administrative centre for the Highlands & Islands Council area of Scotland. The city is located approximately 105 miles (169 kilometres) north-west of Aberdeen and 157 miles (253 kilometres) north of Edinburgh. The city is readily accessible by road, with the A9 motorway providing access to Perth, with Edinburgh and Glasgow beyond. The A96 provides a link to Aberdeen to the east and the A82 to Fort William and the south-west. The city centre train station serves both the local and national area, which for the 2009/10 year was used by over 1,070,000 people (Source: www.rail-reg.guv.uk). Inverness also boasts an international airport which was utilised by over 660,000 people in 2008/9, with passenger numbers expected to rise to over 1,000,000 by 2015 (Source: www.hial.co.uk). Catchment Population The total population within the Inverness catchment area is 525,700. The city is projected to expand significantly with the 2.65 billion A96 Corridor Development Zone, which is to the east of the city, predicted to result in over 16,500 new residential units being built in the coming years (www.highland.gov.uk). The age profile of visitors to the city is dominated by the high spending 25 to 44 year old age group (36%) and the 45+ age category (49%) (Source: RCT, May 2009). The city has a higher spend per person ( 6,338.30) than both the Scottish and UK averages, which is due to the catchment having a high percentage within the wealthier ACORN groups of Wealthy Executives, Affluent Grades, Flourishing Families, Starting Out and Secure Families than the Scottish average (Source: CACI). In addition, spending in Inverness is hugely boosted by tourism, which brings in 200 million to the local economy. It is now ranked as the 12th most visited place by international visitors in the UK (Source: www.highland.gov.uk 2009). Absolute Ownership (Scottish equivalent of English Freehold). Offers of 4,150,000 (Four Million, One Hundred and Fifty Thousand Pounds Sterling) are sought for the Absolute Ownership in the property. A purchase at this level will show a Net Initial Yield of approximately 7.25% after allowing for purchaser s costs at 5.8%. This plan is published for convenience of identification. Any boundaries shown are indicative only and should be checked against the Title Deeds. This plan is based upon Ordnance Survey Map with the permission of the Controller of H M Stationery Crown Copyright.

Retailing in Inverness The city s prime retailing pitch is centred around High Street and the Eastgate Shopping Centre. The town centre retail floor space is estimated at 1.03 million sq ft. Given Inverness geographical distance from major competitors, the city is the dominant retailing destination in the Highlands & Islands. Within Inverness core catchment population of 160,900 persons, 78.3% use the city as their regular shopping destination (Source: RCT, May 2009). With the proposed enlargement of the city and surrounding area, this shopping population is due to increase substantially. The High Street is the 100% prime retailing street, which provides a link between the Eastgate Shopping Centre at its western end and Primark at its eastern end. Occupiers on the street include Marks & Spencer,Top Shop, Burton,W H Smith and HSBC. The property is located in the 100% prime pitch within the High Street. Adjacent occupiers include Burtons/ Dorothy Perkins,Top Shop and Dunfermline Building Society.

Description The property comprises a parade of 3 well laid out retail units. Unit 1, (Phones 4U) is arranged over ground, first and second floors whilst Unit 2, 41 High Street (Tiso) is laid out over ground, first, second and attic floors. Finally, 43/47 High Street (Orange) is arranged over ground, first and second floors. Subject to planning permission being granted, 41 High Street could be extended to the rear as there is a grassed yard within the demise. A standalone wooden shed currently occupies part of the site and is used by Tiso for storage. We understand that the following Net Internal Areas were agreed at the last rent reviews: Address Tenant Floor Sq M Sq Ft ITZA Unit 1 Totals Phones 4U Limited Ground First Second 144.74 65.96 76.83 287.53 1,558 710 827 3,097 1,186 Unit 2 Totals Graham Tiso Ground First Second Attic 194.26 100.43 89.30 n/a 386.99 2,091 1,081 961 n/a 4,133 1,561 43/47 High Street Totals Orange Retail Limited Ground First Second 58.62 59.92 50.73 169.27 631 645 546 1,822 755 Tenure We understand that Absolute Ownership (Scottish equivalent of English Freehold) is held. Tenancy Address Tenant Lease Start Lease Expiry Next Rent Review Current Rent Unit 1 Unit 2 Phones 4U Limited Guaranteed by Caudwell Subsidiary Holdings Ltd 24/01/1983 01/02/2018 02/02/2013 125,250 ( 105.61 ZA) Graham Tiso 19/11/1994 18/11/2019 19/11/2014 129.400 ( 82.90 ZA) 43/47 High Street Orange Retail Limited Guaranteed by Orange plc 21/05/1999 20/05/2014 63,500 ( 84.10 ZA) Total 318,150 The weighted average unexpired lease term (WAULT) is 7 years.

Covenant Status Phones 4U Limited is the United Kingdom s fastest growing independent mobile phone retailer, with more than 440 stores. In 2006 the retailer was sold for a sum of 1.46bn to private equity firms, Providence Equity Partners and Doughty Hanson. Experian rates this company as very low risk. For the financial year to 31 December 2009 the company had a net worth of 103,076,000, with a turnover of 619,594,000 whilst producing a pre-tax profit of 420,000. Caudwell Subsidiary Holdings Ltd is rated by Experian as very low risk. For the finanical year to 31 December 2009 the company had a net worth of 93,714,000 and produced pre-tax profit of 5,467,000. Graham Tiso, established in 1962, is an outdoor clothing and equipment retailer with 15 outlets across Scotland, England and Northern Ireland. Experian rates the company as very low risk and for the financial year to 31 January 2010 the company had a net worth of 3,750,000. The turnover for the same year was 20,194,000, producing a pre-tax profit of 807,000. Orange Retail Ltd has recently merged with T-Mobile, forming the Everything Everywhere Group, which now has 28 million customers, 15,000 employees and 700 stores nationwide. The company is rated by Experian as very low risk. For the financial year to 31 December 2009 the company had a net worth of 29,030,000. The turnover for the same year was 402,171,000, with the pre-tax profit being 7,081,000. Orange plc is rated by Experian as very low risk. For the financial year to 31 December 2009 the company had a net worth of 5.48bn, with a turnover of 71,542,000, producing a pre-tax loss of 851,179,000. Plant & Equipment None of the systems or equipment in this property have been tested by Cushman & Wakefield LLP. Purchasers may wish to make their own investigations to check that they are in working order. VAT It is anticipated that the sale will be treated as a Transfer Of a Going Concern (TOGC). However should this not be the case, the property has been elected for VAT and therefore VAT would be payable on the purchase price. Proposal Offers of 4,150,000 (Four Million, One Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT are sought for the Absolute Ownership in the property. This represents an attractive Net Initial Yield of approximately 7.25%,after allowing for purchaser s costs at 5.8%. INVESTMENT SALES GROUP CONTACTS Inverness 41/47 High Street These property details are available on www.cushmanwakefieldinvestmentsales.co.uk where further information including the legal and title information, EPCs, maps, plans and photographs can also be found. For further information or to arrange an inspection please contact: STEPHEN BIBBY Tel: 0131 226 8738 Fax: 0131 226 8755 Email: stephen.bibby@eur.cushwake.com STEVEN NEWLANDS Tel: 0131 226 8756 Fax: 0131 226 8755 Email: steven.newlands@eur.cushwake.com CHRIS LEWIS Tel: 0207 152 5991 Fax: 0207 152 5399 Email: chris.g.lewis@eur.cushwake.com Cushman & Wakefield LLP 66 Hanover Street Edinburgh EH2 1EL February 2010 MISREPRESENTATION ACT 1967 and PROPERTY MISDESCRIPTIONS ACT 1991 Cushman & Wakefield LLP (and their joint agents if appointed) for themselves and for vendors or lessors of this property whose agents they are, give notice that: (1) The particulars are produced in good faith, are set out as a general guide only and do not constitute any part of a contract. (2) No person in the employment of the agent(s) has any authority to make or give any representation or warranty whatever in relation to this property. (3) This property is offered subject to contract and, unless otherwise stated, all rents are quoted exclusive of VAT. (4) Nothing in these particulars should be deemed to be a statement that the property is in good condition or that any services or facilities are in working order. (5) Unless otherwise stated, no investigations have been made regarding pollution or potential land, air or water contamination. Interested parties are advised to carry out their own investigations if required.