FOR SALE BONNINGTON ROAD, EDINBURGH RETAIL WAREHOUSE, TRADE COUNTER & LIGHT INDUSTRIAL PREMISES

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1 RETAIL WAREHOUSE, TRADE COUNTER & LIGHT INDUSTRIAL PREMISES FOR SALE BONNINGTON ROAD, EDINBURGH MAY SUIT A VARIETY OF HIGHER VALUE USES INCLUDING FOODSTORE, STUDENT ACCOMMODATION, HOTEL, RETAIL, RESIDENTIAL AND MIXED - SUBJECT TO THE NECESSARY CONSENTS.

2 th Floor, Exchange Tower, 19 Canning Street, Edinburgh, EH3 8EG Fax: Montagu Evans LLP for themselves and for the vendors or lessors of this property whose agents they are give notice that (i) the particulars are as set out as general outline only for the guidance of intending purchases or lessees and do not constitute the whole or any part of an offer or contract (ii) all descriptions, dimensions, references to conditions and necessary permissions for use and occupation, and other details are given in good faith but without any responsibility whatsoever and any intending purchasers or tenants should not rely on them as statements of representations of fact, but must satisfy by inspection or otherwise as to the correctness or each of them; (iii) neither Montagu Evans LLP nor its employees has any authority to make or give any representation or warranties whatsoever in relation to this property; (iv) unless otherwise stated, all prices and rents are quoted exclusive of VAT, and intending purchasers or lessees must satisfy themselves independently as to the applicable VAT position. The information contained within these particulars has been checked and unless otherwise stated, is understood to be materially correct at the date of publication. After these details have been printed, circumstances may change outwith our control. When we are advised of any change we will inform all enquirers at the earliest opportunity. Date of Publication July 2012.

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4 INVESTMENT SUMMARY Opportunity to purchase a retail warehouse, trade counter and light industrial estate which is multi-let to four tenants with two vacant units. Total passing rent 157,350 per annum. Potential to increase the passing rent to c 206,000 per annum by letting of the vacant units. Opportunity to add value by redeveloping vacant units or entire site. We are instructed by our client to seek offers in excess of 1,950,000 exclusive of VAT. Assuming purchaser s costs of 5.8%, a purchase at this level would show a purchaser with a net initial yield of 7.62% and a reversionary yield upon letting the vacant units of c10.24%. LOCATION The premises occupy a highly prominent position at the junction of and Pilrig Street, approximately two miles from Edinburgh s city centre. The surrounding area is a mixture of uses including residential, local retailing, retail warehousing and light industrial/warehousing. The property is close to Bonnington Industrial Estate, which is a short distance to the north of the property. DESCRIPTION The property comprises a small cluster of five solus warehouse units, although Unit 3 has been sub-divided into two units. The estate has a tarmac surfaced yard and car parking and the units are used for retail warehousing, trade counter and light industrial. TENURE Heritable interest (Scottish equivalent of English Freehold). SITE A site plan is attached and the total site area is hectares (1.704 acres). The property is located close to Edinburgh city centre, with good road access. There is a lack of warehouse, trade counter and basic retail warehouse accommodation in the city centre. PLANNING The site would suit a variety of alternative uses including foodstore, student accommodation, hotel, retail, residential or mixed, subject to the necessary consents. Montagu Evans have prepared a planning statement which is available to interested parties. ASSET MANAGEMENT The estate offers the purchaser with a number of asset management opportunities, including: Letting or re-development of the vacant units. Relocating ATS into a new roadside facility. Re-developing the entire site. COVENANT Remnant Kings Central Ltd - Remnant Kings is a private limited company which was established in Its principal activity is the sale of fabric, haberdashery and crafts, and they have five stores in Scotland. For year ending 28 February 2010 the company had a tangible net worth of 91,500 and it is D&B rated D3. Further information can be found at PPG Architectural Coatings UK Ltd - PPG Industries is a leader in its markets. Its principal activity is the production and sale of paint, varnish and other coatings. PPG has manufacturing facilities and equity affiliates in more than 60 countries around the globe. For year ending 31 December 2010, the company reported a turnover in excess of 173m and a tangible net worth in excess of 68m. The company is D&B rated 5A1. Further information can be found at ATS (Scotland) Ltd was established in 1961, ATS Euromaster is a nationwide tyre retailer and comprehensive tyre service provider with over 48 years of experience and a network of 380 service centres across the UK. For year ending 31 December 2010, ATS (Scotland) Ltd reported a turnover of 147,000, a profit of 260,000 and a tangible net worth of in excess of 3.5m. The company is D&B rated 2A1. Further information can be found at Freeze Scotland Ltd was incorporated in July Its principal activity is the sale of ski and snowboard equipment and clothing. During August 2011, SportsVision (International) acquired at 51% stake in Freeze Scotland Ltd, injecting 152,000 of capital. Their last financial year to 31 July 2011 has seen Freeze Scotland Ltd, reporting a 43% increase in turnover to 1m from 730,000 the previous year, with losses reducing from 44,000 to 31,000. Margins during the year July 2011 have also improve by over 2% to 28.3%. Shareholders funds at 31 July 2011 amounted to 1,000. The company is D&B rated N3. Further information can be found at

5 TENANCY SCHEDULE DEMISE TENANT AREA (SQFT) ADJUSTED AREA (SQFT) LEASE START LEASE EXPIRY NEXT RENT REVIEW RENT ( PER ANNUM) RENT ( PER SQFT) COMMENTS Unit 1, 163 Unit 2, 161 Unit 3a, 169b Vacant 6,148 6,148 Vacant 4,801 4,801 Remnant Kings Central Ltd (SC107879) t/a The All New Cloth Shop Ground Mezz Storage Mezz Sales 6, ,337 7,912 07/11/ /11/ /11/ , Tenant interest - ERV 17,700 per annum ( 3.00 per sqft). Great Grog vacated 22/05/2012. Previous rent 31,100 per annum ( 6.47 per sqft). Not yet being marketed ERV 31,200 per annum ( 6.50 per sqft). Devaluation assumes 1/4 on the mezz storage and 1/2 on the mezz sales. (Adjusted area 7,912 sqft). Unit 3b, 169a Unit 4, 167 Unit 5, 165 PPG Architectural Coatings UK Ltd (436135) t/a Johnstone's Leyland ATS (Scotland) Ltd (SC013284) t/a ATS Euromaster Freeze Scotland Limited (SC252962) 4,797 4,797 22/08/ /08/ /08/ , ,162 5,162 14/01/ /05/ /02/ , ,823 4,823 05/ /07/ , Yearly rent reviews RR documented 02/02/2007, therefore argument next RR on 02/02/2014. ATS have confirmed that they may relocate, however they will not entertain discussions with any party until they are given preferred bidder status. Six months rent free and a further 12 months rent free at 50%. Schedule of condition attached to lease. Service charge cap of 4,777 per annum increasing annually with RPI. 19,583 33, ,350 PRICING We are instructed to seek offers in excess of 1,950,000. Assuming purchaser s costs of 5.8%, a purchase at this level would show a purchaser with a net initial yield of 7.62% and a reversionary yield upon letting the vacant units of c10.24%. VIEWING & FURTHER INFORMATION Strictly by prior arrangement with the sole selling agent: Elliot Cassels elliot.cassels@montagu-evans.co.uk

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7 th Floor, Exchange Tower, 19 Canning Street, Edinburgh, EH3 8EG Fax: Montagu Evans LLP for themselves and for the vendors or lessors of this property whose agents they are give notice that (i) the particulars are as set out as general outline only for the guidance of intending purchases or lessees and do not constitute the whole or any part of an offer or contract (ii) all descriptions, dimensions, references to conditions and necessary permissions for use and occupation, and other details are given in good faith but without any responsibility whatsoever and any intending purchasers or tenants should not rely on them as statements of representations of fact, but must satisfy by inspection or otherwise as to the correctness or each of them; (iii) neither Montagu Evans LLP nor its employees has any authority to make or give any representation or warranties whatsoever in relation to this property; (iv) unless otherwise stated, all prices and rents are quoted exclusive of VAT, and intending purchasers or lessees must satisfy themselves independently as to the applicable VAT position. The information contained within these particulars has been checked and unless otherwise stated, is understood to be materially correct at the date of publication. After these details have been printed, circumstances may change outwith our control. When we are advised of any change we will inform all enquirers at the earliest opportunity. Date of Publication July 2012.