Darnley. Leisure Park

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1 G l a s g o w / G R H

2 Executive Summary Prime investment in Glasgow, prominently located on major arterial route. Highest calibre, national tenant line-up including Costa Coffee, McDonald s, KFC, Carphone Warehouse and Domino s. 100% income producing with 87% of total income secured against national covenants. Situated next to large Sainsbury s and B&Q, with an extensive retail catchment. Adjacent land to be further enhanced by a significant mixed-use development, including 300 new homes. Current passing rent of 377,500 per annum. Income security for an average weighted unexpired term of over 10 years until the earliest lease breaks, with over 73% of the income secured until at least November Demonstrable rental growth with consistent uplifts at reviews. Park totals 13,797 sq ft (1, sq m). 158 car parking spaces, offering an excellent car parking ratio of 1:88 sq ft (1:8 sq m). Heritable interest (Scottish equivalent of Freehold). Clear asset management opportunities to add further value. Offers in excess of 5,500,000 (Five Million, Five Hundred Thousand Pounds) exclusive of VAT are invited. A purchase at this level provides a net initial yield of 6.49%, assuming purchaser s standard acquisition costs of 5.80%.

3 GLASGOW AIRPORT A82 A8 Location A726 A77 Glasgow is Scotland s largest city and the third largest in the UK. Glasgow City has a population of approximately 593,000, 11.40% of Scotland s population. Greater Glasgow includes the surrounding local authority areas and has a population of 1.75 million, 34% of Scotland s population. A736 A77 A726 A749 A724 A725 Situation is located approximately 10 km (6.5 miles) south-west of Glasgow city centre. The Park lies adjacent to Nitshill Road (A726), which is a very busy arterial road linking the wealthy commuter suburbs of East Renfrewshire to the M77 motorway network. The M77 is the main arterial route connecting Glasgow city centre, to its southern suburbs and onwards to Ayrshire. NITSHILL ROAD DARNLEY MAINS RD A726 to Glasgow City Centre (6.5 miles) More specifically, the subjects are situated to the west of Junction 3 of the M77 and accessed from either Nitshill Road or Leggatston Drive, which form the northern and eastern boundaries of the property respectively. While the surrounding area is predominantly residential in nature, the property lies on the same development as a B&Q warehouse and Sainsbury s superstore. Both stores have a substantial catchment and trade exceptionally well, generating significantly high car volumes to. LEGGATSTON DRIVE A726 NITSHILL ROAD Silverburn Shopping Centre is also located nearby, approximately 1.5 miles north of the property and is easily accessible from Junction 2 of the M77. Benefitting from a footfall in excess of 14 million visitors per annum, Silverburn is the principal upscale shopping centre in Glasgow and attracts shoppers from across central Scotland. There are no competing fast food drive-thru s at Silverburn and subsequently benefits from the high passing trade of the Silverburn shoppers.

4 M8 Motorway Glasgow City Centre J2 M77 Motorway A726 Nitshill Road A726 Nitshill Road J3 M77 North On-Ramp J3 M77 Off-Ramp J3 M77 On-Ramp South to Ayrshire Waukglen Road MERIDIAN DEVELOPMENTS MIXED USE 77 ACRE DEVELOPMENT SITE

5 Site Plan Description DARNNLEY MAINS ROAD A726 NITSHILL ROAD was developed in 2 phases known as 1 and 2. 1 comprises a retail park of 11,946 sq ft (1, sq m), which includes three large solus units and a larger block of three adjoining units. The Park was developed in 2001 and all units are of modern steel frame construction. Two of the solus units are drive-thru fast food restaurants (let to McDonald s and KFC) which have both been subject to significant recent refurbishment by the respective tenants. The third unit is let to Carphone Warehouse and the three unit block comprises a large Health Centre/ Pharmacy, a Domino s and a newly-let Subway. LEGGATSON DRIVE 1 provides 130 on-site car parking spaces, reflecting an excellent ratio of 1:92 sq ft (1:9 sq m). 2 is located to the south of Mains Road and provides an extensive single storey, purpose-built Costa Coffee Drive-Thru unit designed to the Costa corporate style. The property extends to 1,851 sq ft ( sq m) and was completed in G The unit is the second of its kind to be built in Scotland by Costa and is part of a wider expansion of the Drive-Thru concept within the UK. Costa secured the letting ahead of a number of competing corporate occupiers. Since opening, the unit has performed exceptionally well, exceeding all forecasts. The property benefits from 20 on-site car parking spaces plus 2 designated disabled spaces, reflecting an excellent ratio of 1:93 sq ft (1:9 sq m). The Park extends in total to approximately hectares (3.54 acres). EPC Ratings Unit Tenant Scottish EPC Rating Equivalent English EPC Rating A McDonald's Restaurants Ltd G D B Kentucky Fried Chicken (Great Britain) Ltd C Carphone Warehouse Ltd F C D Houlihan Pharmacy Ltd E C E DP Realty (t/a Domino's) G D F Subway Realty Limited F A G Costa Ltd C B G D

6 G l a s g o w / G R H Mains Road, Glasgow, G53 7RH G l a s g o w / G R H Mains Road, Glasgow, G53 7RH Mains Road, Glasgow, G53 7RH G l a s g o w / G R H Surrounding Developments Immediately adjacent to the leisure park lies a 85,000 sq ft Sainsbury s supermarket and a 120,000 sq ft B&Q DIY Superstore, both of which generate substantial volumes of traffic to the locality. A significant mixed-use, commercial and residential development is planned on the site located to the south of the B&Q store as highlighted on the plans opposite. The 77-acre, 150 million scheme has outline planning consent (12/00398/DC) to develop 300 new 3-5 bedroom homes, a 75-bedroom hotel and leisure club, as well as offices, showrooms and retail warehouses. Bellway Homes and Persimmon Homes are to develop the residential element of the scheme. *Plans opposite are provided by ADF Architects and are intended for indicative purposes only.

7 Tenancy Schedule The units are let to the following tenants on full repairing and insuring terms: Unit Tenant Lease Start Lease Expiry Size (Sq FT) Size (Sq/M) Rent ( 's PA) Rent ( 's Per Sq Ft) Next Rent Review A McDonald's Restaurants Ltd 21/12/ /12/2026 3, , /12/2016 B Kentucky Fried Chicken (Great Britain) Ltd 05/08/ /08/2027 2,852* , /08/ /08/2017 C Carphone Warehouse Ltd 25/07/ /07/2027 2, , /07/2012 D Houlihan Pharmacy Ltd 01/05/ /04/2027 2,057* , /02/2017 E DP Realty (t/a Domino's) 19/03/ /03/ * , /02/2017 F Subway Realty Limited Feb 2014 Feb , Feb 2019 Feb 2019 G Costa Ltd 28/11/ /11/2027 1, , /08/ ,797 1, ,500 Lease Break Date Comments *Areas shown are those documented in the leases **Agreement for lease executed 31/01/2014, conditional on building warrant. Lease start due in mid-february. The Tenant has an additional break option in the 10th year. is 100% income producing with 87% of total income secured against national tenant covenants. The letting profile provides income security for an average weighted unexpired term of over 10 years to the earliest break options. Over 73% of the income is secured until at least November The recent letting of Unit F to Subway attracted substantial interest from a number of leisure, retail and medical users, further underlining the desirability of the scheme. Proportion of Tenant Income McDonald's Restaurants Ltd 24.00% Kentucky Fried Chicken (Great Britain) Ltd 20.00% Carphone Warehouse Ltd 13.00% Houlihan Pharmacy Ltd 13.00% 7.00% 7.00% 16.00% 24.00% 20.00% DP Realty (t/a Domino's) 7.00% Subway Realty Limited 7.00% Costa Ltd 16.00% 13.00% 13.00%

8 Covenant Information The Park has an exceptional occupier line-up, with 100% occupancy and 87% of the income secured against tenants with a D&B rating of 5A1 or better: Tenant Year End Pre-Tax Profit ( 000 s) Tangible Net Worth ( 000 s) Sales Turnover ( 000 s) D&B Rating McDonald s Restaurants Ltd ( ) Kentucky Fried Chicken (Great Britain) Ltd (967403) The Carphone Warehouse Ltd ( ) Houlihan Pharmacy Ltd (SC ) DP Realty Ltd (t/a Domino s) ( ) Subway Realty Ltd ( ) Costa Ltd ( ) 31/12/ , ,048 1,317,594 5A1 02/12/ ,137 91, ,345 5A1 30/03/ , ,975 1,672,115 5A1 31/12/2012 (112) (2,726) 8,876 N2 30/12/2012 (620) ,530 B2 31/12/2012 2,021 2,507 28,059 2A3 28/02/ , , ,959 5A1 Service Charge The total service charge equates to 25,000 per annum and is fully recoverable. Full details will be provided upon request. Tenure Heritable interest, (the Scottish equivalent of English freehold).

9 A726 Nitshill Road VAT Glasgow City Centre M77 Motorway J3 M77 North On-Ramp J3 M77 On-Ramp J3 M77 Off-Ramp Ayrshire The property has been elected for VAT and accordingly VAT will be payable on the purchase price. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC). Planning is covered by the approved Glasgow & Clyde Valley Joint Structure Plan (2009) and adopted Glasgow City Plan 2 (2009). The Park and is allocated for commercial uses in accordance with Class 1,2,3,4 and 11 and related sui generis uses. 1 was awarded detailed planning consent in accordance with the Town and Country Planning (Scotland) Act 1997 in August 2000 and November 2001 (Application Nos: 99/02233/DC and 01/01562/DC). Unit D - Houlihan Pharmacy Ltd also benefits from having a pharmacy licence which is extremely valuable. We understand that the nearby Sainsbury s had historically applied for their own pharmacy licence to create an in-store Chemist but this application was refused by Glasgow Council. 2, (Unit G - Costa Coffee) was awarded detailed planning consent in accordance with the Town and Country Planning (Scotland) Act 1997 in February 2012 (Application No. 11/02891/DC). A copy of all planning related documents is available on request. Asset Management A number of additional asset management opportunities exist and may include the following: Working through the forthcoming rent reviews to improve the rental income. Negotiation with KFC to remove their tenant break option in August A726 Nitshill Road Future negotiation with Subway Realty Ltd to remove their tenant break options in February 2019 and Addition of another solus unit on unused area of car park STP. Addition of advertising hoardings STP.

10 Proposal We are instructed to seek offers in excess of 5,500,000 (Five Million, Five Hundred Thousand Pounds) exclusive of VAT for the heritable interest in the property. A purchase at this level provides a net initial yield of 6.49%, assuming full purchaser s costs of 5.80%. Viewing & Further Information For further information, please contact: Martyn Brown martyn.brown@cbre.com Campbell Docherty campbell.docherty@cbre.com Lawrence Telford ltelford@cocol.co.uk Mark Sheehan msheehan@cocol.co.uk CBRE/Coffer Corporate Leisure on its behalf and for the Vendors or Lessors of this property, whose Agents they are, give notice that: These particulars are set out as a general outline only for guidance to intending Purchasers or Lessees, and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Parties 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. No person in the employment of CBRE/Coffer Corporate Leisure has any authority to make any representation or warranty whatsoever in relation to this property. Unless otherwise stated, all prices and rents are quoted exclusive of VAT. Date of publication February 2014.