NEXT & Iceland 7-11 MIDLAND ROAD, BEDFORD MK40 1PL 100% PRIME RETAIL INVESTMENT

NEXT & Iceland 7-11 MIDLAND ROAD, BEDFORD MK40 1PL 100% PRIME RETAIL INVESTMENT

7-11 MIDLAND ROAD, BEDFORD MK40 1PL INVESTMENT CONSIDERATIONS 100% prime freehold retail investment Direct rail links to London St Pancras International in 35 mins Prominent corner pitch with significant return frontage Location to benefit from proposed Harpur Shopping Centre Refurbishment and occupation of former BHS by Days Department Store (The Edinburgh Woollen Mill Group) Freehold Total GIA floor area of approximately 36,873 sq ft (3,425.6 sq m) Let to the 5A1 rated (Dun & Bradstreet) NEXT Group Plc and Iceland Foods Limited Current passing rent of 425,000 pa AWULT of approximately 6.2 years to expiry Reversionary potential with 2016 rent reviews outstanding Offers sought in excess of 5,695,000 (Five Million Six Hundred and Ninety Five Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a Net Initial Yield of 7.00%; allowing for standard purchaser s costs. 2

7-11 MIDLAND ROAD, BEDFORD MK40 1PL 100% PRIME RETAIL INVESTMENT A43 WELLINGBOROUGH A14 A1 A1 NORTHAMPTON NORTHAMPTON A45 A428 A509 A6 A428 CAMBRIDGE A A43 A508 M1 A422 A421 BEDFORD BEDFORD M11 A421 A1 A505 A5 MILTON KEYNES MILTON KEYNES CENTRAL A6 A505 M1 A421 A4146 A5 M1 A10 A41 A418 AYLESBURY A505 A5 LUTON LONDON LUTON AIRPORT A1(M) A602 BISHOP S STORTFORD A10 A4010 A413 A41 M1 ST ALBANS A414 M25 A10 CHESHUNT M25 HARLOW M11 A4 M40 A355 M25 WATFORD WATFORD JUNCTION A10 M11 Location Bedford is the county town of Bedfordshire and is a strong commercial and retail centre, located 80 km (50 miles) north of London, 29 km (18 miles) north east of Milton Keynes and 34 km (21 miles) south east of Northampton. The town benefits from excellent transport links and is strategically located between the major arterial routes of the A1 and M1, both being 16 km (10 miles) to the east and west respectively. The A421 southern bypass is a primary link between the A1 and M1, with the section between Bedford and junction 13 of the M1 having recently been upgraded to dual carriageway. The A421 additionally links with the A6, which provides direct access to Luton to the south. The town is well served by rail connections with frequent services to London St Pancras with a fastest journey time of 35 minutes. International air travel is provided by Luton Airport approximately 32 km (20 miles) to the south. 3

NEXT & Iceland 7-11 MIDLAND ROAD, BEDFORD MK40 1PL 100% PRIME RETAIL INVESTMENT Situation The property occupies a 100% prime trading position on Midland Road in close proximity to Marks & Spencer, Boots, DAYS Department Store (under refurbishment), Primark and immediately opposite the principal entrance to the Harpur Shopping Centre. The Iceland fronts Church Square and is immediately adjacent to DAYS Department Store and the recently refurbished Church Arcade. Prime retailing is centred upon the pedestrianised Midland Road and Silver Street. The additional pedestrianised areas of Allhallows and Church Square benefit from strong pedestrian flows from the town s bus station, secondary retail areas and car parks. The town s main shopping centre, the Harpur Centre, is located directly opposite the subject property. The centre comprises approximately 200,000 sq ft of retail accommodation providing 31 A1 and A3 units and 97 car parking spaces. BEDFORD BUS STATION Demographics Bedford has a population of 82,000 and a wider borough population of 159,000 (2011 Census). The Borough s population rose from 148,000 in 2001 to 159,000 in 2012 (increase of 12%). Much of the Borough is situated in the growth areas of the former Milton Keynes and South Midlands (MKSM) Strategy and approximately 9,000 new homes are planned for 2012-2021. As a result the Borough s population is expected to grow significantly to more than 170,000 by 2021. Under Refurbishment The town draws from a much larger primary catchment of 322,000 (Promis) due to lack of competition and strong retailing provision within the town. Therefore Bedford attracts a large volume of the available spend within the surrounding area. Rental Analysis and Value Prime rents in Bedford have recorded encouraging signs of recovery from the pre-recession peak of 100 psf Zone A. Recent lettings within the vicinity of the property suggest a Zone A rental tone up to 90.00 psf within the Prime Pitch area. It is our opinion that the current rents analyse as follows: NEXT GROUP PLC 66.86 psf Zone A. In arriving at this analysis, we have adopted a rate of A/20 on the first floor ancillary accommodation and have incorporated a 5% discount for quantum and a 2.5% addition for the return frontage. ICELAND FOODS LIMITED 16.38 psf based on a total GIA of 11,582 sq ft. Crown Copyright, ES 100004106. For identification purposes only. 4

7-11 MIDLAND ROAD, BEDFORD MK40 1PL 100% PRIME RETAIL INVESTMENT BEDFORD A TRANSFORMATION A TRANSFORMATION Harpur Centre Redevelopment & Days Department Store (Former BHS) The immediate location will benefit from a number of ongoing improvements which will improve the prime shopping pitch of Bedford and footfall on Midland Road. The Harpur Shopping Centre, situated directly opposite the subject property, is subject to a major re-development including a re-designed façade and increased floor area fronting on to Midland Road. The former BHS store adjacent to the subject property has recently been purchased by the Edinburgh Woollen Mill Group. Plans have been submitted to extend and infill the store to provide additional sales area and the group intend to fit the store out as a Days Store. The EWM Group includes brands such as Peacocks, Edinburgh Woollen Mill, Ponden Homes Interiors, Jane Norman, Austin Reed and have recently purchased Jaeger. Further information can be found on the following link: http://www.harpurcentre.co.uk/harpur-centre-is-changing-a-new-vision/ Bedford Riverside The Bedford Riverside, funded by TIAA Henderson, has recently completed and comprises a 70,000 sq ft leisure scheme anchored by a VUE cinema and a Premier Inn hotel. The development will transform the town s restaurant supply with tenants including Zizzi s, Chimichanga (Prezzo Group), Wagamamas and Mitchells & Butler. The development also includes a residential element. Bus Station Redevelopment In April 2015, Bedford Council officially unveiled a re-developed bus complex for the town following an investment of 8.8m. The development, which replaced the 1960s bus station, included new public toilet facilities, a major refurbishment of Allhallows multi-storey car park, the construction of a new surface car park at Greyfriars and new shop fronts with disabled access. 5

7-11 MIDLAND ROAD, BEDFORD MK40 1PL 100% PRIME RETAIL INVESTMENT Description The property comprises a large retail premises with a frontage on to Midland Road and Church Square which is divided into two individual units. Both units are serviced by a shared loading bay on the eastern elevation which is accessed from Paradine Court via Harpur Street. The loading bay provides two separate lifts, one servicing each unit. UNIT 1 (NEXT Group PLC) Comprises well configured sales accommodation on ground floor with first floor ancillary accommodation with a frontage to Midland Road with return frontage to James Street. The property benefits from a double height atrium at the entrance. UNIT 2 (Iceland Foods Limited) Comprises well configured sales accommodation on ground floor with basement, first and second floor ancillary accommodation with frontage to Church Square. Within the lease the basement and second floor are to be disregarded at rent review. Tenure Freehold Tenancies & Accommodation Unit Tenant Description GIA Sq ft (sq m) Unit1 Unit 2 NEXT Group PLC Iceland Foods Limited NIA Sq ft (sq m) ITZA sq ft (sq m) Lease Start Lease Expiry Rent Review Ground Floor Sales 9,998 (928.8) 9,329 (866.7) 3,682.7 (342.1) 19/09/2011 19/09/2021 19/09/2016 1st Floor Ancillary 9,442( 877.2) 7,991 (742.4) (outstanding) 2nd Floor Ancillary 164 (15.2) Sub Total 19,604 (1821.2) 17,320 (1,609) Basement (not utilised) 692 (64.3) 229 (21.3) 20/12/2011 20/12/2026 20/12/2016 Ground Floor Sales 6,734 (625.6) 6,387 (593.4) (outstanding) 1st floor Ancillary 4,848 (450.4) 4,298 (399.3) 2nd floor Ancillary (not utilised) 4,951 (460.0) 3,934 (365.5) Sub Total 17,225 (1,600.25) 14,848 (1,379.42) Passing Rent ( pa) (Rent PSF/ITZA) 250,000 ( 66.86 ITZA)* 175,000 ( 16.38 psf) Total 36,829 (3421.52) 32,168 (2,988.42) 425,000 *Assuming 5% reduction for quantum and 2.5% premium for return frontage. demised areas 6

7-11 MIDLAND ROAD, BEDFORD MK40 1PL 100% PRIME RETAIL INVESTMENT Covenant Information NEXT GROUP PLC - DUN & BRADSTREET 5A1 NEXT are one of the UK s best known multiple fashion brands with the first NEXT shop opening in 1982. The group now trades from more than 500 stores in the UK and Iceland Foods Limited - Dun & Bradstreet 5A1 and around 200 stores in more than 40 countries abroad. NEXT distributes through three main channels including NEXT Retail, NEXT Directory and NEXT International Retail. Current corporate strategy is focused on product quality, profitability and returning cash to shareholders through special dividends and share buybacks. In January 2017, the company announced an expected surplus of approximately 255m after deducting interest, tax, capital expenditure and ordinary dividends. In 2016, NEXT made a significant investment of 161,000,000 on new retail stores, warehousing and logistics systems with a particular focus on increasing online sales capabilities. Net trading space increased by 330,000 sq ft; representing an increase of 5.6% on the current store portfolio. NEXT Group Plc recently reported the following financial information: ICELAND FOODS LIMITED - DUN & BRADSTREET 5A1 Iceland Foods Limited is a highly successful supermarket chain that places an emphasis on the sale of frozen foods. The company was founded in 1969 and operates from 884 stores across the UK and employs over 22,000 people. In the previous financial year, Iceland opened 36 new stores across the UK along with significant recorded growth in their online sales business; voted the top online store by the Which? Annual Supermarket Survey for the second consecutive year. Investment in the previous year totalled 66.9m, including new stores and refurbishments, IT systems and logistic upgrades. In October 2016, Iceland trialled a new store format in selected stores and is due to be rolled out to UK stores as part of a significant new capital expenditure programme and marketing campaign. Iceland Foods Limited recently reported the following financial information: 31st Jan 2014 31st Jan 2015 30th Jan 2016 Dun & Bradstreet 28th March 2014 27th March 2015 25th March 2016 Dun & Bradstreet Turnover ( 000s) 3,740,000 3,999,800 4,176,900 Pre-Tax Profit ( 000s) 695,200 782,200 836,100 Total Net Worth ( 000s) 241,900 278,000 268,100 Turnover ( 000s) 2,699,261 2,682,021 2,658,332 Pre-Tax Profit ( 000s) 161,459 58,794 58,172 Total Net Worth ( 000s) 656,381 709,630 740,354 5A1 5A1 7

VAT The property is elected for VAT and it is anticipated that the transaction will be treated as a Transfer of a Going Concern (TOGC). MEASURED SURVEYS The Vendor has recently carried out measured surveys of each unit. These measured surveys and associated warranties will be transferred to the purchaser upon completion of the sale. EPC s The property has been rated grade D (77) and D (90). DATA ROOM For Dataroom access please use the following link https://datarooms.allsop.co.uk/ register/neicebed PROPOSAL Offers sought in excess of 5,695,000 (Five Million Six Hundred and Ninety Five Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a Net Initial Yield of 7.00%; allowing for standard purchaser s costs. For further information or to make arrangements for viewing please contact: Jeremy Hodgson 020 7543 6709 jeremy.hodgson@allsop.co.uk Mark Dansky 020 7543 6813 mark.dansky@allsop.co.uk Tom Dales 020 7543 6866 tom.dales@allsop.co.uk Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design: CommandD www.commandhq.co.uk 09.17 www.allsop.co.uk 8