PRIME FREEHOLD SOUTH EAST UNBROKEN RETAIL PARADE FOR SALE

PRIME FREEHOLD SOUTH EAST UNBROKEN RETAIL PARADE FOR SALE

INVESTMENT SUMMARY Prime South East multi-let retail block. Located in the affluent town of Crawley, located in the South East of England, 31 miles south of Central London and in close proximity to Gatwick Airport. Freehold modern unbroken parade of 10 well configured retail units, providing a total area of 59,600 sq ft and served by a 60 space NCP car park at the rear. Tenants include H&M, Topshop, Sports Direct, NCP and EE. Rebased, affordable rental tone on The Martlets WAULT to expiry is 5.93 years and 4.98 years if the car park income is excluded. Potential to look at residential / hotel development on the block, subject to planning. Our clients are seeking offers in excess of 18,000,000 subject to contract and exclusive of VAT, which reflects a net initial yield of 7.53% after allowing for normal purchasers costs.

Crawley Borough Council Offices P The Boulevard P P Central Sussex College Queensway College Road Queens Square THE MARTLETS Memorial Gardens P County Mall Shopping Centre Southgate Avenue For identification purposes only. Crawley Station Station Way

LOCATION HEATHROW AIRPORT LONDON GATWICK EXPRESS Croydon Sutton Crawley is situated in the County of West Sussex, some 30 miles south of Central London, 21 miles north of Brighton and 27 miles south east of Guildford. Crawley is well served by road communications, joining the M23, which in turn links with the M25 at Junction 7, with Central London to the north and Brighton to the south. Gatwick Airport is located 6.4km (4 miles) to the north of the town and is the UK s second busiest airport. The presence of Gatwick is important to Crawley, contributing to the commercial and industrial success of the town. The airport generates around 23,500 jobs and a further 20,000 jobs through related activities. The airport caters for just over 31m passengers a year and 318,963 tonnes of freight. Connex South Central provides rail services to Crawley from London Victoria, whilst the Gatwick Express provides similar links with a journey time of some 30 minutes. M3 Woking Guildford Dorking Reigate Redhill Horley A24 GATWICK AIRPORT A281 Cranleigh 10 CRAWLEY Petworth Epsom M25 Banstead A3 Leatherhead Billingshurst Arundel Horsham Stormington A2 72 Hednfiel Steyning Worthing A2 7 11 A23 Cuckfield English Channel Catterham M25 7/8 Oxted Burgess Hill Hassocks Brigthon Lingfield A22 East Grinstead Haywards Heat h A26 Lewes A26 4 A21 Uckfield Newhaven M26 Sevenoaks Tonbr Royal Tunbridg Wells Crawley is at the centre of the Gatwick Diamond, one of the strongest local economies in the country.

DEMOGRAPHICS & ECONOMY Crawley is an expanding commuter town with a resident population of 111,599 within a 3 mile radius and a primary catchment population of 515,000, above the Sub Regional Weak Town areas and ranking the town 38 out of the Promis Centres. The estimated shopping population of Crawley is 213,000 and the town is projected to see further above average population growth over the period 2016-2021. Further residential development is planned in the town centre and across the Borough. YPC Group reports that there are an increasing number of town centre residential units, with currently 372 units in the pipeline. The retail catchment is expected to grow as 5,000 additional homes are planned across the Borough over the next 15 years. These include residential developments at Forge Wood and Kilnwood Vale. Crawley has an excellent demographic profile with a catchment population that is moderately affluent, ranking 45 of the Promis Centres on the PMA Affluence Indicator as at 2011. Crawley has the 8th highest employment rate of all cities in the UK, of 76.3% in 2015. Crawley has seen a 600% rise in jobs, becoming an increasingly popular travel to work area - a bigger rise than any anywhere else in the UK over the last century (Centre per City s Report March 2015). Crawley is at the centre of the Gatwick Diamond, one of the strongest local economies in the country and an area of significant growth. With Gatwick Airport being at its heart and Heathrow Airport less than an hour away, the Gatwick Diamond has excellent interconnected infrastructure of air, road, rail and sea that connects it to London and the UK, mainline Europe and the rest of the world. Major employers in the area include Gatwick Airport, Civil Aviation Authority, TUI Travel Plc, Gate Gourmet Plc, KPMG, Grant Thornton and Deloitte Touche.

REGENERATION RETAILING IN CRAWLEY Regeneration of Queens Square due to be finished October 2017. There is an estimated 960,000 sq ft of retail floor space in Crawley, below the sub-regional town centre average and ranking the town 100 of the Promis Centres on this measure. The town is ranked 65 on the basis of its non-food Retail Score and 62 on the PMA fashion score, in terms of retail spend. The prime retail accommodation within the town is concentrated on the pedestrianised Martlets and the County Mall Shopping Centre. Key retailers in the two-level County Mall include, Debenhams, Primark, Next, Boots, WH Smith, Waterstones, Miss Selfridge and River Island. Other retailers in Crawley include Marks & Spencer, New Look, H&M, Peacocks and HMV. The County Mall Shopping Centre has the town s main shopper car park, with 1,800 customer spaces and is also in close proximity to Crawley s Rail & Bus Stations. The prime retailing further extends into the pedestrianised Martlets, which is further complimented by the more secondary retail location of Queens Square, Queensway and Broad Walk. Retailers located in the Queensway / Queen s Square areas include Marks & Spencer, TK Maxx, New Look, Argos and Sainsbury s. Crawley Borough Council and West Sussex County Council are working to enhance the town centre to create a new small business hub area and encourage a restaurant culture. The Councils are investing 3m to regenerate Queen s Square, with work having started in September 2016 and due to complete in Autumn 2017.

Regeneration of Queens Square due to be finished October 2017 DEICHMAN SHOES LA RUSTA VAPORIZED For Identification purposes only NORTH

DESCRIPTION The property comprises a triangular site that slopes from North to South and comprises 2 adjoining buildings forming a terrace, a service yard and a 60 space NCP operated public car park located to the rear, accessed from Queensway via Parkside, a private roadway that is part of the property. A substation is located within the public car park on the North East corner of the site within a purpose built single storey enclosure. SITUATION The subject property is located in a prime trading location within Crawley town centre on the pedestrianised Martlets, which links the Standard Life owned County Mall Shopping Centre to Queen s Square.

ACCOMMODATION The accommodation details are detailed in the tenancy schedule below. The majority of the units are principally arranged on ground and first floor, with a total floor area of 59,600 sq ft (5,536.98 sq m). Address Tenant Name Lease Start Term (yr/days) 1 The Martlets La Rusta Restaurant Ltd 3 The Martlets CCHG Ltd t/a Vaporized Unit A, 5 The Martlets CEX (Franchising Ltd) Expiry Date Break Clause 01/10/17* 10 yrs TBC 5th year 14/09/17* 10 yrs TBC 5th year Rent Review Next review Current Rent pa ZA Rental Value pa ZA GF Sales (sq ft) ITZA FF (sq ft) SF (sq ft) Comments 5 47,500 78.18 47,500 78 1,040 634 659 644 Exchanged subject to planning for an A3 consent. Tenant is to receive 6 months rent free and 6 months at half rent. Tenant only break at 5th year with 9 months notice. 15,000 rental deposit. 5 47,500 79.00 47,500 79 1,018 627 645 642 Agreement for lease exchanged. Lease start date likely to be 14th September 2017. Tenant break at 5th year with 6 months notice. Tenant received 12 months rent free. 19/06/09 10 yrs 18/06/19 N/A 82,500 99.90 77,000 90 1,816 803 925 95 Experian Credit Score rating out of 100 15 54 Unit B, 7 The Martlets EE Limited 23/07/03 15 yrs 22/07/18 5 117,500 136.80 79,500 90 2,029 835 899 80 Unit C, 9 The Martlets Unit D, 11 The Martlets Unit E, 13/15 The Marlets Unit G, 17 The Martlets Unit H, 19 The Martlets T Mobile (UK) Limited Nero Holdings Ltd Sports Direct. com Retail Ltd Top Shop/Top Man Properties Limited HMV Retail Limited 21/08/02 15 yrs 20/08/17 5 115,000 134.00 78,500 90 1,913 822 920 Tenant holding over no notices served. 25/04/12 10 yrs 24/04/22 5 25/04/17 80,000 92.48 78,000 90 2,178 865 100 11/10/11 10 yrs 10/10/21 5 278,400 102.67 245,000 90 6,325 2,191 FF Sales - 4,775 FF Ancillary - 868 01/10/12 10 yrs 30/09/22 5 01/10/17 140,000 100.78 126,700 90 3,730 1,231 3,187 (ancillary) 07/08/13 5 yrs 06/08/18 175,000 97.59 161,900 90 5,847 1,724 1,350 (ancillary) Ancillary area of 847 sq ft included in ground floor area, valued at A/16. At rent review first floor sales to be disregarded and valued as ancillary. 100 100 45 35 Unit J, 21 The Martlets Car Park *Estimated lease start dates. H&M Hennes & Mauritz UK Limited National Car Parks Limited 01/01/14 14 yrs 11 mths 31/12/28 01/01/21 (T) 5 01/01/19 285,000 77.18 330,500 90 9,336 2,885 Sales / Ancillary 8,854 Tenant regeared in 2014 and extended first floor as part the transaction. 01/01/14 25 yrs 31/12/39 N/A 80,000 80,000 24hr 60 space car park. Potential for rental top up subject to turnover. 1,448,400 1,352,100 35,232 23,082 1,286 Total Floor Area: 59,600 sq ft 100 100

TENURE The ownership is held freehold as two separate titles, with 1/3 The Martlets held in one title and the remainder in the other. TENANCIES The current rental income is 1,353,400 pa, which will increase to 1,448,400 pa, when the lettings on Units 1 & 3 complete. On the assumption that the letting on Unit 3 completes, the WAULT to expiry is 5.93 years. 25% 16% 25% 34% 0-2 yrs 2-5 yrs 5-10 yrs 10 yrs Approximately 97% of the rent passing is attributable to national multiple covenants.

ESTIMATED RENTAL VALUE It is our opinion that the estimated rental value as of today s date would lie in the region of 1,352,100 pa, which reflects a prime Zone A rental tone of 90 per sq ft. The principle rental evidence can be set out as follows:- 1. 16/18 The Martlets (Card Factory) Lease renewal in June 2017 agreed at a rent of 111,000 pa, which reflects a net Zone A of 85 per sq ft. 2. Unit 4-26 The Martlets (Carphone Warehouse) 10 year reversionary lease effective November 2016, with a tenant break at the end of the 5th year, agreed at a rent of 126,950 pa, which reflects a headline Zone A of 90 per sq ft and a net tone of 81 per sq ft. 3. Unit 1 The Martlets (Lush) Lease renewal June 2016 at a rents of 35,000 pa, which reflects a Zone A of 107.55 per sq ft. We understand that prime rents in the County Mall scheme are currently approximately 115 per sq ft Zone A with a service charge.

COVENANT STATUS We have undertaken research, via Experian, into the covenants offered by the Lessees and set out the details of their Experian Credit Score in the Tenancy Schedule. Further information on the tenant covenants is available from this office. Approximately 97% of the income is secured against national and multiple covenants. SERVICE CHARGE A service charge is in place and is apportioned on each occupiers gross internal floor area. The budget for 2017/2018 is 25,870 and the service charge for the year ended 2016/2017 was 26,243.78. Further information is available upon request. ENERGY PERFORMANCE CERTIFICATES Energy Performance Certificates (EPCs) available upon request. VAT The property has been elected for VAT and we anticipate that the transaction will be treated as a Transfer Of A Going Concern (TOGC).

PROPOSAL We are instructed to seek offers in excess of 18,000,000 (Eighteen Million Pounds), which reflects the following yield profile, net of purchaser s costs of 6.75% :- Initial yield - 7.53% Reversionary yield - 7.03% Equivalent yield - 7.07% True equivalent yield - 7.40% The price reflects a capital value of 285 per sq ft, excluding the car park income. The principle evidence can be set out as follows:- 1. 1/3 Kingsgate, Crawley Freehold secondary retail block sold in April 2017 for 11m, which reflected a net initial yield of 6.82%. The block was let to TK Maxx, Argos and Gala with a WAULT of 9.7 years. 2. 61/96 Queensmead, Farnborough Freehold secondary retail residential investment block, sold in March 2016 for 16m, reflecting a net initial yield of 7.7%.

For further information, please contact the sale agents, Jackson Criss: DESIGNED BY TCC Philip Hay 020 7637 7100 phay@jacksoncriss.co.uk Brook Wannop 020 7637 7100 brookw@jacksoncriss.co.uk Messrs. Jackson Criss for themselves and for the vendors or lessors of this property whose agents they are to give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements of representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of Messrs. Jackson Criss has any authority to make or give any representation or warranty whatever in relation to this property. JC0110. September 2017.