The Range Clacton-on-Sea

The Range Clacton-on-Sea Valley Road, CO15 4AD Well Secured Retail Warehouse Investment

Investment Summary Clacton is a busy coastal resort and commuter town located on the east coast of Essex, 76 miles from London. The property is situated approximately 1.5 miles north of the town centre. The building is a purpose built stand alone retail warehouse unit extending to 28,390 sq ft of accommodation plus garden centre and car park. The property benefits from an extended bulky goods planning consent. Freehold The lease has an unexpired term in excess of 20 years. The income is secure being let to CDS (Superstores International) Ltd, trading as The Range (D&B rating: 4A2). The rent passing of 338,400 pax equates to only 11.92 per sq ft. Next rent review June 2010 We are instructed to seek offers in excess of 4,266,000 (four million, two hundred and sixty six thousand pounds). This will show the purchaser a net initial yield of 7.5% (costs at 5.7625%). The property is held in a Jersey incorporated SPV that can be available to purchase. Clacton is a busy coastal resort and commuter town located on the east coast of Essex, 76 miles from London 2 The Range Clacton-on-Sea

Location Clacton-on-Sea is the largest town on the Tendring Peninsula in Essex. It is a busy coastal resort and commuter town located on the east coast approximately 76 miles (122 km) east of London, 10 miles (16 km) south east of Colchester and 28 miles (46 km) south of Ipswich. Other nearby towns includes Braintree, Chelmsford and Southend-on-Sea. Access to the town is provided by the A133 trunk road, via the A120 dual carriageway and the A12, the main arterial route from London to East Anglia which is situated 20 miles (32 km) to the north of the property. The A12 links with Junction 28 of the M25, 55 miles (88.2 km) to the west and providing further links with the national motorway network. To the north, at Ipswich, the A12 joins the A14 trunk road, a major east-west route that links the North Sea ports with the M1, A1(M), the Midlands and the North. Clacton railway station is located approximately 1.5 miles (3 km) south west of the property and provides an hourly direct service to London Liverpool Street with a journey time of approximately 1 hour 26 minutes. Situation The subject property is situated close to the A133, the main road into Clacton-on-Sea, on the northern side of Valley Road, at its junction with Valleybridge Road, from which vehicular access is gained. Valley Road (B1027) links the A133 with the commercial area around the subject property and further east to the residential neighbourhood of Holland Park. East of the property, this road becomes the B1032, and extends north east to the seaside resorts of Frinton and Holland-on-Sea. The property is situated in a mixed use area of residential and commercial buildings. A Ford car showroom is located on an adjacent site. The unit is 1.5 miles north of the principal shopping area of Clacton-on Sea centred on Pier Avenue. A505 A505 Haverhill Sudbury Ipswich A12 A602 A10 M11 A131 Braintree A120 A12 Colchester A14 Felixstowe Harwich A120 THE RANGE A133 Harlow A130 Wiltham Clacton-on-Sea M25 M11 A414 Chelmsford A12 Maldon A10 406 A406 London A206 A205 A20 A12 M25 Dartford M25 A127 A13 A2 Basildon Gillingham Rochford Southend-on-Sea Queensborough The subject property is situated close to the A133, the main road into Clacton-on-Sea 3 The Range Clacton-on-Sea

Demographics The town has a local population of 55,949 and 138,555 within the District (2001 census). The 20 minute drivetime from the site comprises 93,085 people and the key demographic indicies for this 20 minute drivetime are as follows: c Claction-on-sea great britain AB social group 13.77% 21.57% c1 social group 32.93% 29.42% c2 social group 15.27% 15.23% age over 55 44.68% 28.13% car ownership (1 car) 46.82% 43.77% home ownership 80.78% 68.32% It is a busy coastal resort and commuter town located on the east coast Retail Warehousing in Clacton-on-sea Retail Warehousing in Clacton is located in three main locations: 1 Oxford Road The Co-op foodstore is located approximately 300m from the subject property. Other tenants include Carpetright and the Vergo Home Store in the former Co-operative Homemaker. 2 Brook Retail Park London Road This park comprises circa 72,500 sq ft and is let to B&Q, Currys, KFC and Pizza Hut and is adjacent to a Tesco Foodstore of circa 75,300 sq ft. The park was constructed and let in 2005 with B&Q being let at a rent of 13.35 psf & Currys at a rent of 14.00 psf. Both these units are subject to rent reviews in June 2010. 3 Waterglade Retail Park Old Road This park comprises circa 78,000 and is let to Comet, Homebase, Carpetright, Iceland and Halfords and is adjacent to a Wm Morrison Foodstore of circa 50,500 sq ft. This park is older than Brook Retail Park and has passing rents ranging 12.00 psf to 14.00 psf. CLACTION BY-PASS A133 NORTH RD LONDON ROAD B1441 ST JOHN S ROAD 3 2 LONDON R O AD OLD ROAD WELLSLEY ROAD THORPE ROAD B1442 CARN AVON ROAD THE RANGE HIGH STREET VALLEY ROAD B1027 1 CLACTON-ON-SEA ST HOLLAND ROAD B10 3 2 4 The Range Clacton-on-Sea

Planning The property has the following principal planning consents: Permission granted in February 1986 provided for the erection of a Description The subject property comprises a solus purpose built retail warehouse unit, trading as The Range, constructed in the mid 1980 s and extending to 28,390 sq ft (GIA), including a first floor mezzanine area. There is an external garden centre and surface car parking for approximately 110 vehicles. Tenant s improvements have extended the mezzanine area and covered the garden centre, comprising circa 12,500 sq ft and 6267 sq ft respectively The building is single storey with a steel double bay portal frame. The roof is powder coated profiled metal cladding with translucent roof lights. The walls are of brick and blockwork construction, externally clad with profiled metal sheeting. The unit has an eaves height of approximately 16ft 9ins (5.12m). Access to the property is via Valleybridge Road. Valley Road Valleybridge Road non food retail warehouse with garden centre to be used for no other purpose other than the sale of carpets, furniture, electrical goods, sanitary ware including bathrooms, kitchens and bedroom unit decorative products, including ceramic tiles, wallpapers, paint and floor coverings, timber wall boards, packs of sand and cement, guttering and pipes, doors and other building materials and home improvement goods, tools and equipment, garden supplies and associated items, auto parts, sports goods, chandlery and marine accessories, hobbies and toys. The Tenant obtained permissions granted in August 2005 providing for the construction of an extended mezzanine and covered garden centre (regarded as tenant s works) and extending the range of uses to include textiles/furnishings, pet supplies, stationary, kitchen equipment, cookware, utensils and accessories, ceramics, tableware, glassware and bathroom accessories. These consents also provide that - The service yard, between the garden centre and the car park, has its access adjacent to the main car park entrance, at the south eastern corner of the building where a single roller shutter loading bay is located. No more that 235 sq m shall be used for the sale of pet supplies No more than 280 sq m shall be used for the sale of stationary The premises will not be subdivided into separate retail units at any time We calculate the site extends to approximately 1.65 acres (0.67 hectares). Accommodation The property provides the following gross internal areas: Floor Use Gross Internal Floor Areas sq m sq ft Ground Sales & Ancilliary 2,448.98 26,361 First Ancillary 188.49 2,029 Ground (External) Garden Centre 582.20 6,267 Total Ground & First Floor 2,637.47 28,390 There is an external garden centre of circa 6,267 sq ft and surface car parking for 110 vehicles. 5 The Range Clacton-on-Sea

Tenant Covenant CDS (Superstores International) Ltd, trading as The Range, opened their first Superstore in Plymouth in 1989. There are now 40 stores countrywide, offering 65,000 products, across 16 departments and employing over 2,500 people. We understand that there are plans to build another 150 stores nationwide. The Range is recognised for its unique variety, and offering affordable quality in its range and products. In 2005 The Range ranked 78th in the Sunday Times Price Waterhouse Coopers league table of the UK s 100 fastest growing companies. We set out below a summary of the most recent financial statements for the company. D&B Rating: 4A2 Year to Year to Year to 01/02/2009 27/01/2008 28/01/2007 Turnover 174,674,955 155,081,414 134,731,238 Pre Tax Profit 10,200,979 6,457,370 5,940,093 Tangible Net Worth 34,304,561 27,140,810 23,451,217 Tenure Freehold Tenancy The entire property is let to CDS (Superstores International) Ltd, on a 25 year full repairing and insuring lease from 24th June 2005. The rent passing is 338,400 pax ( 11.92 per sq ft) and is the subject of upward only review on 24th June 2010 and every 5 years thereafter. VAT The property has been elected for VAT purposes. The Range is recognised for its unique variety, and offering affordable quality in its range and products 6 The Range Clacton-on-Sea

Contacts Alistair Russell Mobile: +44 (0)7971 318258 Direct: +44 (0)207 851 2159 Fax No: +44 (0)207 851 4910 E-mail: alistair_russell@glhearn.com David Slatter Mobile: +44 (0)7778 149218 Direct: +44 (0)207 851 2594 Fax No: +44 (0)207 851 4910 E-Mail: david_slatter@glhearn.com Proposal We are instructed to invite offers in excess of 4,266,000 (four million, two hundred and sixty six thousand pounds) for the freehold interest subject to the lease to CDS (Superstores International) Ltd. A purchase at this level would show the investor a net initial yield of 7.5% (assuming costs at 5.7625%). Subject to Contract and exclusive of VAT. As an alternative the property is held in a Jersey incorporated SPV that can be available to purchase. Further details are available to interested parties. Misrepresentation Conditions under which these particulars are issued. All details in these particulars are given in good faith, but GL HEARN Property Consultants for themselves and the Vendors of this property for whom they act give notice that:- 1. These particulars do not and shall not constitute, in whole or in part, an offer of a contract or part therefore, and GL HEARN Property Consultants have no authority to make or enter into any such offer or contract. 2. All statements contained in these particulars are made without acceptance of any liability in negligence or otherwise by GL HEARN Property Consultants, for themselves or for the Vendors. 3. None of the statements contained in these particulars is to be relied on as a statement or presentation of fact or warranty on any matter whatsoever, and intending purchases must satisfy themselves by whatever means as to the correctness of any statements made within these particulars. 4. the Vendors do not make, give or imply, nor do GL HEARN Property Consultants or any person in their employment have any authority to make, give or imply, whether in these particulars or otherwise, any representation or warranty whatsoever in relation to the property. The statement does not affect any potential liability under the Property Misdescriptions Act 1991. Clacton-On-Sea The Range January 10 Ref: 106123