FOR SALE PRIME RETAIL WAREHOUSE INVESTMENT CLASS 1 (RETAIL) NON-FOOD CONSENT B&Q, CRIEFF ROAD PERTH PH1 3NZ

FOR SALE PRIME RETAIL WAREHOUSE INVESTMENT CLASS 1 (RETAIL) NON-FOOD CONSENT B&Q, CRIEFF ROAD PERTH PH1 3NZ

EXECUTIVE SUMMARY» Situated at the heart of Scotland, Perth has a resident population of c. 45,000 and a catchment population of 163,000. The city has a diverse economy.» The property is located west of the city centre, in a prominent position opposite Tesco Extra and adjacent to the.» Constructed in 2006 the property comprises a modern purpose built retail warehouse unit extending to 61,380 sq.ft., flanked by builders yard and garden centre.» The development incorporates surface parking for 256 cars (1 space per 240 sq.ft.).» The unit benefits from open Class 1 (Retail) non-food consent.» Heritable Interest (Scottish equivalent to English freehold).» Let to B&Q plc (D&B Rating 5A1) until 13 August 2026. 11.3 years unexpired.» Rental 853,182 per annum exclusive ( 13.90 per sq.ft.).» Offers in excess of 12.25 Million invited representing a net initial yield of 6.58% after deduction of purchaser s costs at 5.8%.» The property is held in an Isle of Man domiciled SPV.» The proposition offers an opportunity to acquire a well secured retail warehouse investment in a very strong location.

B&Q MINI-WAREHOUSE CRIEFF ROAD PERTH PH1 3NZ INTRODUCTION Perth is located in the heart of Scotland and enjoys excellent communications being served by the M90 from the south and the /M80 to the south-west. Edinburgh is 43 miles south and Glasgow 61 miles south-west. The city is the administrative centre for Perth & Kinross District and officially received its City status in March 2012 to mark the Queen s Diamond Jubilee. The city is known as the Gateway to the Highlands and the Fair City. It is considered by many to be the first capital of Scotland from the 800s until 1437. RUTHVENFIELD ROAD TO INVERNESS A ISLA ROAD INVERNESS ABERDEEN 0 PERTH DUNDEE A82 M90 M80 M9 GLASGOW M8 EDINBURGH M74 3 DEMOGRAPHICS Perth had an urban area population of 44,820 in 2008. The population of Perth & Kinross District has been steadily rising and was estimated to be 149,520 as at 2011, an increase of approximately 10% over the decade. By 2035 the population of Perth & Kinross is projected to rise to 195,187 which represents an increase of approaching 32%. Perth & Kinross District benefits from higher than average car ownership and a lower than average Claimant Count Unemployment rate in comparison to the GB average. TO GLASGOW STIRLING CRIEFF ROAD A85 3 GLASGOW RD M90 M90 TO EDINBURGH DUNKELD ROAD 12 DUNKELD RD CRIEFF RD GLASGOW RD TOWN CENTRE EDINBURGH RD 12 PITCULLEN A85 DU N DEE CR RO A D M90 0 TO DUNDEE

B&Q MINI-WAREHOUSE CRIEFF ROAD PERTH PH1 3NZ ECONOMY TRANSPORT CULTURE, LEISURE & TOURISM The strength of Perth s economy lies in its diversity, with a balance of large companies, the public sector, a wide range of small and medium sized enterprises and self-employed business people. Renewable energy, insurance, manufacturing, leisure, health and transport continue to stimulate employment. The largest employers in the City include Perth & Kinross Council, NHS Tayside, Scottish & Southern Energy, Aviva and Perth College UHI (part of the University of the Highlands & Islands). The leading international transportation company, Stagecoach Group, is headquartered in the City.» Perth & Kinross economy is in the top ten enterprising demographics in Scotland.» Locally registered companies turn over 10bn annually.» The total tourism revenue generated for Perth & Kinross in 2011 was 448m.» Perth & Kinross had 1.89m visitors in 2011 with 4.89m tourist stays being generated.» The gross domestic product in Perth & Kinross has steadily risen since 2010. Perth represents a transport hub for many journeys by road and rail throughout Scotland. The M90 motorway runs south from the city to Edinburgh, the road connects it to Stirling and Glasgow in the south-west and Inverness in the north. The 0 connects the city to Dundee (22 miles) and Aberdeen (83 miles) north-east. Perth Rail Station has regular services to Fife, Edinburgh via the Forth Bridge, east to Dundee and Aberdeen and south to Glasgow Queen Street. There is also a direct service to London Kings Cross and a sleeper service to London Euston. Local buses are run by Stagecoach Group and inter-city bus services are provided to Scotland s principal cities plus Manchester and London. The nearest major airport is Edinburgh International Airport although Dundee Airport, which is c. 20 minutes drive time, operates direct scheduled flights to select destinations including London City Airport. THE STRENGTH OF PERTH S ECONOMY LIES IN ITS DIVERSITY The City of Perth and its surrounding area offers a very high quality of life and this is recognised by its consistently high ranking in quality of life surveys. The area is renowned for its thriving cultural scene which includes venues such as the Perth Concert Hall (Scotland s newest), Perth Theatre (one of Scotland s oldest and most historic repertory theatres) and Pitlochry Festival Theatre. There are a number of museums and art galleries including Perth Museum & Art Gallery situated adjacent to the Concert Hall and the Fergusson Gallery. Annual festivals of art and music bring international artists to the area, while events such as the Rewind Festival and T in the Park make it a regular destination for music fans. In addition to cultural events, the area boasts one of Scotland s best sporting event programmes that include the Johnnie Walker Golf Championship, Blair Castle International Horse Trials and the Etape Caledonia. In addition there is a regular programme of race meetings at Perth Racecourse. The area is a popular base for outdoor activities. There is world class fishing, walking and cycling opportunities and a range of golf courses including the 2014 Ryder Cup host, Gleneagles. THE AREA IS RENOWNED FOR ITS THRIVING CULTURAL SCENE

45 12 2 49 59 30 28 47 35 37 25 23 13 1 11 59 69 B&Q MINI-WAREHOUSE CRIEFF ROAD PERTH PH1 3NZ RETAILING IN PERTH SITUATION Perth s primary catchment population is estimated to be 163,000. Its catchment is considered to be moderately affluent with a higher than average level of car ownership. The pedestrianised High Street represents the prime retail pitch within the town centre and retailers such as Debenhams, Marks & Spencer and Primark have representation. The High Street offer is complemented by the St John s Centre which extends to approximately 153,000 sq.ft. and is in the ownership of the Universities Superannuation Scheme. St Catherine s Retail Park which is in multiple ownership is the principal destination and is anchored by a Morrisons food store. Other occupiers on the extended park include Homebase, Halfords, Wickes and Carpetright. B&Q relocated from St Catherine s to Crieff Road in 2006. Highland Gateway Retail Park comprising c. 75,000 sq.ft. is situated north of the city centre at the busy Inveralmond Roundabout on the. Occupiers include Tiso, Aldi and M&S Simply Food. The property is situated approximately 1.7 miles north-west of Perth city centre close to the junction between the A85 (Crieff Road) and the. The is the principal arterial route leading to the north of Scotland. Benefiting from extended frontage to the A85 (Crieff Road) the property is bounded by Huntingtower Road to the west, Newhouse Road to the east and Grange Terrace to the south. The property is situated opposite a 24 hour Tesco Extra superstore with PFS. Other occupiers in proximity include St Johnstone Football Club, Dobbies Garden Centre and various car dealerships. Superstore El Sub Sta Retail warehousing supply in Perth was estimated by PROMIS to be 402,000 sq.ft. with 63% of floor space on retail parks. A 85 CRIEFF ROAD Ward Bdy Co Const Bdy Garage Tanks CR El Sub Sta A 9 Garage 55 El Sub Sta GRANGE TERRACE 42 Tanks HUNTINGTOWER ROAD 32 14 NEWHOUSE ROAD 0m 25m 50m 75m 56 58 WEST MAINS AVENUE Ordnance Survey Crown Copyright 2015. All rights reserved. Licence number 100022432. Plotted Scale - 1:2225 53

PERTH B&Q TESCO A85 M90 DOBBIES

B&Q MINI-WAREHOUSE CRIEFF ROAD PERTH PH1 3NZ DESCRIPTION AND ACCOMMODATION The subject property trades as a B&Q Mini-Warehouse and comprises a modern retail warehouse development constructed in 2006 in accordance with the standard B&Q specification. The development incorporates the following: Retail warehouse unit with GIA of 5,702 sq.m (61,380 sq.ft.) Adjacent garden centre of 1,334 sq.m (14,250 sq.ft.) Bulk goods yard of 674 sq.m (7,255 sq.ft.) The site extends to approximately 2.047 hectares (5.06 acres) and the development is served by 256 dedicated car spaces which represents a ratio of 1 space per 240 sq.ft. The retail warehouse unit is of steel portal frame construction with part brick/block and composite panel cladding. Internally the unit is fitted out to the standard B&Q format incorporating the usual facilities. There is a designated service yard incorporating a 26 metre diameter turning circle to the rear of the bulk goods yard with access from Newhouse Road.

B&Q MINI-WAREHOUSE CRIEFF ROAD PERTH PH1 3NZ TENANCY AND RENTAL ANALYSIS TENANT INFORMATION The property is leased to B&Q plc for a period of 20 years from14 August 2006 until 13 August 2026. B&Q plc is the largest home improvement and garden centre retailer in the UK, employing more than 20,000 people nationwide. The company currently operates from 350 stores in the UK, 8 stores in Ireland and over 60 stores internationally. B&Q plc is part of Kingfisher plc, Europe s leading home improvement retail group and the third largest in the world. The current rent passing under the lease is 853,182 per annum and this is subject to an open market (upwards only) rent review on 14 August 2016. As at the date of these particulars the lease has a remaining term certain of c 11.3 years. Excepting a small area conveyed to Scottish Hydro Electric for use as an electricity substation together with ancillary rights, the entire site incorporating surface car park and landscaped areas is leased to the tenant on full repairing and insuring terms. The annual rental of 853,182 per annum based upon the adopted area of 61,380 sq.ft. equates to a rental of 13.90 psf. For the purposes of rent review, the existence of the garden centre, bulky goods area etc, should be assumed but no rental value should be attributed to these areas. The permitted use under the lease is nonfood retail use within Class 1 of the Schedule of Town & Country Planning (Use Classes) (Scotland) Order 1997. The lease permits the tenant to grant up to a maximum of 5 sub-leases of parts of the premises. For the financial year ending 1 February 2014, sales turnover was 3.6bn with profit of 138.6m. The company has a tangible net worth of 4.4bn and a Dun & Bradstreet rating of 5A1 indicating minimum risk of business failure. The covenant is institutionally acceptable. A summary of the most recent accounts for the company is set out below. B&Q plc 1/2/2014 2/2/2013 28/1/2012 (000 s) (000 s) (000 s) Turnover 3,589,500 3,637,900 3,710,400 Profit before Tax 138,600 (44,100) 203,300 Tangible Net Worth 4,385,900 4,305,500 4,368,500 Net Current Assets 3,836,900 3,714,500 3,585,900

B&Q MINI-WAREHOUSE CRIEFF ROAD PERTH PH1 3NZ Pitlochry B&Q STORES IN PROXIMITY TO PERTH Forfar Dunkeld 0 20 miles Dundee 10 miles 2 A85 Crieff Road 1 Perth 11 0 A84 9 1 2 1 St Andrews 1 Subject Property Crieff Road, Perth 2 Warehouse 17.52 miles 3 Mini Warehouse 20.12 miles 25 King s Cross Road, Kingsway West, Dundee Fife Central Retail Park, Kirkcaldy 11 10 M9 4 9 6 M80 Stirling 1 1 Falkirk 3 7 2 5 85 4 6 5 4 M90 Dunfermline 3 5 2 Dalgety Bay Glenrothes 3 Kirkcaldy 4 North Berwick 4 Supercentre 21.50 miles 5 Mini Warehouse 30.9 miles 6 Mini Warehouse 34.4 miles Riverside Retail Park, Units 1-4 Riverside Road, Leven Carnegie Drive Retail Park, Dunfermline Units 1-3 Springkerse Retail Park, Murston Road, Stirling

TENURE Outright Ownership/Heritable Interest (Scottish legal equivalent to freehold in England). PLANNING The B&Q site benefits from a Class 1 (Retail) non-food consent. Detailed planning consent was granted by Perth and Kinross Council in September 2005 for the erection of a non-food retail warehouse. There are no subsequent planning consents which supersede the position stated above. We are unaware of any other proposals in the vicinity that would have an impact on this property. CAPITAL ALLOWANCES Further information is available upon request. VAT The property has been elected for VAT and therefore VAT will be payable on the purchase price. It is anticipated that the sale can be treated as a Transfer of a Going Concern. EPC The property has an Energy Performance Rating of E. A copy of the EPC can be provided upon request. PROPOSAL We are instructed to seek offers in excess of 12.25 Million (Twelve Million Two Hundred and Fifty Thousand Pounds) exclusive of VAT for the benefit of our client s heritable interest in the property. A purchase at this level would offer a net initial yield of 6.58% after deduction of purchaser s costs at 5.8%. With effect from 1 April 2015 Land and Buildings Transaction Tax (LBTT) will replace Stamp Duty Land Tax (SDLT) on property transactions in Scotland. CORPORATE TRANSACTION The property is held in an Isle of Man domiciled SPV. Our client will consider offers to acquire the share capital of this company.

Viewing and Further Information Ryden LLP, 46 Castle Street, Edinburgh EH2 3BN Ford Swanson Telephone: 0131 473 3236 Email: ford.swanson@ryden.co.uk Nick Armstrong Telephone: 0131 473 3223 Email: nick.armstrong@ryden.co.uk Ryden is a limited liability partnership registered in Scotland. Messrs Ryden for themselves and for vendors or lessors of this property whose agents they are give notice that: (i) the particulars are set out as a general outline only for the guidance of intended purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, reference to condition and necessary permissions for use and occupation, and other details are given without responsibility and any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of Messrs Ryden has any authority to make or give any representation or warranty whatever in relation to this property. March 2015.