McLAREN AND ROLLS ROYCE STRATFORD ROAD, HOCKLEY HEATH, SOLIHULL, B94 5NH

McLAREN AND ROLLS ROYCE STRATFORD ROAD, HOCKLEY HEATH, SOLIHULL, B94 5NH

Investment Summary Prime car dealership developed in 2011 Operating two of the UK s most prestigious franchises of McLaren and Rolls Royce Both brands enjoyed record sales in 2014 and the property is their sole representation in the Midlands Let to Rybrook Ltd, guaranteed by Rybrook Holdings Ltd for a further 21.8 years. The current rent is 275,000 per annum 5 yearly upward only rent reviews fixed to 2.5% per annum compounded Offers sought in excess of 5,000,000 Net initial yield of 5.20% (after purchaser s costs of 5.80%) The fixed increases within the leases will provide the following yield profile: 2018 5.95% 2023 6.74% 2028 7.62% 2033 8.62% For further information or if you wish to arrange a viewing please contact: Ben Blackwall 0121 513 0893 ben.blackwall@fspproperty.co.uk Andrew Franck-Steier 0121 513 0891 andrew.franck-steier@fspproperty.co.uk Ben Rose 0207 432 7611 ben.rose@crre.co.uk Giles Cooper 0207 432 7610 giles.cooper@crre.co.uk

Location BIRMINGHAM 4 3a M6 Lying within the affluent West Midlands borough of Solihull, Hockley Heath is strategically positioned in the centre of the country 2 miles south of Junction 4 of the M42 and 1 mile north of Junction 16 of the M40, providing access to the M5 and M6 motorways. Solihull town centre and Birmingham city centre are 4 miles and 9 miles to the north respectively. Warwick and Leamington Spa are 10 miles and 13 miles to the south-east and Stratford up-on Avon is 12 miles to the south. A41 A45 6 Birmingham International Airport is 9 miles to the north-east. Solihull has a population of 3,551,000 inhabitants (20 minute drive time) of which 40.5% are urban wealthy executives by comparison to 25% nationally. SOLIHULL 5 KNOWLE M42 A435 4 A4141 M42 3 3a HOCKLEY HEATH A4177 16 M40 A3400 REDDITCH LEAMINGTON SPA A4189 HENLEY-IN-ARDEN WARWICK A435 N STRATFORD-UPON-AVON

Cheswick Green A34 Monkspath M42 4 Bentley Heath Tilehouse Green Dorridge Situation The property is prominently located on the corner of Stratford Road (A34) and Old Warwick Road in the centre of Hockley Heath. Stratford Road leads directly to Junction 4 of the M42 (2 miles to the north) and Junction 16 of the M40 (1 mile to the south). M42 3a A3400 Hockley Heath Jaguar, Audi, Honda, Toyota, BMW, Land Rover, Porsche, VW, Ferrari, Mini and Volvo dealerships are all located on Stratford Road in close proximity to Junction 4 of the M42. N The property is accessed from Old Warwick Road. M40 16

Description The property comprises an attractive modern car showroom constructed in July 2011 to house the prestigious franchises of McLaren and Rolls Royce. The property is one of only four McLaren showrooms and six Rolls Royce showrooms in the UK. The property has been fitted out to both McLaren and Rolls Royce s corporate standards with each showroom including ancillary offices on the ground floor fronting onto Stratford Road with a shared central reception area. The first floor comprises an additional showroom housing Rybrook s specialist car centre which displays brands including Rolls-Royce, Bentley, Ferrari, Porsche, Audi, Mercedes-Benz, BMW, Jaguar, Maserati and Lamborghini. Externally there are 34 car spaces including 14 display spaces. Site The site area is 0.32 hectares (0.79 acres).

Accommodation The property has been measured in accordance with the RICS code of measuring practice 6th Edition and comprises the following gross internal floor area: Floor Use Area sq.m Area sq.ft Ground Rolls Royce Showroom 293.04 3,154 Tenure Freehold McLaren Showroom 285.67 3,075 Shared/Ancillary 171.06 1,841 First Floor Showroom 536.10 5,771 Ancillary 82.26 885 Total 1,368.14 14,727 Tenancy The property is let to Rybrook Ltd with a guarantee from Rybrook Holdings Ltd, for a term of years commencing on 6 June 2011 and expiring on 27 November 2036, providing an unexpired term of 21.8 years. The current rent is 275,000 per annum. The lease is held on full repairing and insuring terms subject to upward only rent reviews fixed to 2.5% per annum compounded. The next rent review is on 28 November 2018 and the rent will increase to 314,949 per annum. The tenant has an option to renew the lease on expiry of the current lease for 10 years and a further option to renew for 10 years on expiry of the first option. The rent review provisions within the two options to renew are the same as the current lease.

Covenant 1 2 Rybrook is one of the largest privately owned automotive retailers in the UK owned by the Whale family (50%) and Interamericana Trading Corporation (ITC) (50%). It operates eleven wholly owned franchised dealerships in the UK. 3 4 5 6 7 8 11 10 9 On the 9 June 2010, McLaren Automotive, the world s newest sports car company, announced that Rybrook had been selected to represent them in Birmingham as one of only three UK retail partners (McLaren Hamilton has since been developed). The new dealership in Hockley Heath, Solihull, was opened to coincide with the release of the McLaren MP4-12C in July 2011. Further information on the company can be found on its website www.rybrookcars.co.uk Summaries of the tenant s, Rybrook Limited, and the guarantor s, Rybrook Holdings Limited, accounts are set out below: Rybrook Limited 31/12/2013 The company has a Dun & Bradstreet rating of 3A1. 31/12/2012 31/12/2011 Turnover 186,930 182,282 171,158 Pre-tax profit 3,286 3,284 2,239 Shareholders Funds 13,265 10,612 8,149 1 YORK 2 HARROGATE 3 WARRINGTON 4 LLANDUDNO 5 CHESTER 6 SHREWSBURY 7 WORCESTER 8 SOLIHULL 9 WARWICK 10 STRATFORD UPON AVON Rybrook Holdings Limited 31/12/2013 The company has a Dun & Bradstreet rating of 3A1. 31/12/2012 31/12/2011 Turnover 365,580 342,444 331,868 Pre-tax profit 2,019 2,857 1,504 Shareholders Funds 14,424 13,239 11,390 11 CARDIFF

UK Motor Retailing Market The UK motor retailing market is enjoying continuing success with new registrations in 2014 reaching a 10 year high with 2,476,435 new cars registered in the year. This was a 9.3% increase on 2013 and was the 4th largest year of all time. The UK market remains the second largest market in the EU (behind Germany) and has seen significant growth over the last three years with December 2014 marking the 34th consecutive month of growth. In June 2010 McLaren Automotive announced that Rybrook had been selected to represent them in Birmingham as one of only four UK retail partners. The subject property represents McLaren s Midlands dealership with the other lcoations being Knutsford, Cheshire (operated by Sytner Group), Knightsbridge, London (operated by Jardine Motor Group) and Hamilton, Scotland (operated by Park s Motor Group). McLaren Automotive ended 2014 with record sales. A total of 1,648 vehicles were sold in 2014, a 21% increase on 2013 sales. The company launched two new models in 2014, the 650S Coupe and Spider and in 2015 will launch the new Sports Series. Rolls Royce operates from only six locations in the UK with Hockley Heath representing Rolls Royce s Midlands dealership. Other dealerships are located in Dunmow, Edinburgh, London, Manchester and Sunningdale. Rolls Royce sold a record number of cars in 2014 breaking through the 4,000 mark for the first time in the company s 111 year history. The 4,064 cars sold represented a 12% increase on 2013 and was the 5th consecutive year of record sales. Sales in Europe increased by 40%.

UK Car Dealership Investment Market The last 24 months have seen an increasing demand for car dealership investments. The appeal of the automotive sector is the attractive investment fundamentals on offer, with stock typically comprising modern purpose-built facilities let on long institutionally acceptable leases, incorporating fixed upward-only rent review provisions. As a result, the automotive investment market has been particularly active of late, with in excess of 185 million worth of stock having been sold (or placed under offer) during 2014, and prime yields having compressed to around 4.50%, a 50 basis point compression from 2013. Set out below are recent comparable transactions: Location Tenant Lease Terms Transaction Date Price (Yield %) Ford, Bromley, London Honda, Cray Avenue, Orpington Honda, Chester Road, Manchester Bristol Street First Investments Honda Motor Europe Ltd Honda Motor Europe Ltd 15.75 years unexpired Lancaster Portfolio Lancaster Plc 20 years from completion Volvo, Power Road, Chiswick Volvo Cars (UK) Ltd Comments Available 6.2m (4.91%) Lease guaranteed by Vertu Motors Plc. 5 yearly reviews to open market value. 22 years unexpired Sold January 2015 5.52m (4.45%) 5 yearly reviews to RPI collared at 2.25% and capped at 4%. 16 years unexpired Sold October 2014 5.44m (4.95%) 5 yearly reviews to higher of open market or 2.5% pa compounded. 20 years from completion Sold October 2014 24.25m (4.90%) 5 yearly reviews to RPI collared at 1% and capped at 3%. Sold September 2014 10.75m (5.10%) 5 yearly reviews to RPI collared at 1.5% and capped at 3.5%.

VAT The property is elected for VAT and VAT will be chargeable on the purchase price. It is however anticipated that the property will be sold by way of a transfer of a going concern (TOGC). Proposal We are instructed to seek offers in excess of 5,000,000 which reflects a net initial yield of 5.20%, after purchaser s costs of 5.80%. EPC The property has an EPC rating of C59. An EPC report is available on request. Further Information For further information or if you wish to arrange a viewing please do not hesitate to contact: The fixed increases within the leases will provide the following yield profile: 2018 5.95% 2023 6.74% 2028 7.62% 2033 8.62% Ben Blackwall 0121 513 0893 ben.blackwall@fspproperty.co.uk Andrew Franck-Steier 0121 513 0891 andrew.franck-steier@fspproperty.co.uk Ben Rose 0207 432 7611 ben.rose@crre.co.uk Giles Cooper 0207 432 7610 giles.cooper@crre.co.uk