two freehold open non-food retail warehouse investments

TWO FREEHOLD OPEN NON-FOOD RETAIL WAREHOUSE INVESTMENTS
NEWTON ABBOT PLYMOUTH

2
Property
Newton Abbott
Kingsteignton Retail Park
Plymouth
Matalan i
Total
Area
(sq ft)
42,000
48,221
90,221
Rent
(p.a.)
£621,500
£772,000
£1,393,500
Rent
(p.s.f.)
£14.80
£15.50
i Yield profile assumes 2006 rent reviews settled at our opinion of ERV.
ERV
(p.a.)
£652,000
£772,000
£1,424,000
PORTFOLIO SUMMARY
ERV
(p.s.f.)
£15.52
£15.50
Price
£12.95m
£15.37m
£28.32m
Initial
Yield
4.56%
4.75%
4.65%
Equivalent
Yield
4.75%
4.75%
4.75%
Reversionary
Yield
4.76%
4.75%
4.76%
91% of retail floor space has an open A1 (non food) consent
Weighted average unexpired lease term of 18.15 years
Low average retail rent of £15.17 per sq ft
Average retail ERV of £15.51 per sq ft
Portfolio capital value of £313.90 per sq ft
Predominantly let to Matalan, Brantano and Halfords
Both schemes situated close to Tesco food superstores
Newton Abbot Plymouth

INVESTMENT SUMMARY NEWTON ABBOT
Newton Abbot is an attractive south coast market town 6
miles north west of Torquay
Population of 155,000 persons within a 6 mile radius
Prominent location fronting Kingsteignton Road, one of the
main access roads in to the town
A three unit scheme of 42,000 sq ft occupied by Matalan,
Brantano and Halfords
Freehold
Open A1 non-food planning consent on units 2 and 3
Offers are invited at a price in excess of £12,950,000, which
taking purchaser’s costs at 5.7625%, provides the following
yield profile:
Initial Yield 4.54%
Running Yield
(post Halfords RR)
4.66%
Equivalent Yield 4.75%
Reversionary Yield 4.76%
3

4
A390
A30
A39
A38
A395
A38
A388
A30
A386
Plymouth
A38
A38
Newton Abbot
Carpetright Co-op Halfords Tesco
Exeter
A380
A385
M5
A376
Torquay
A30
Homebase Brantano
LOCATION
A35
Matalan
Kingsteignton Retail Park
Sat Nav: TQ12 3HS
Newton Abbot is an attractive market town lying approximately 20 miles south
of Exeter, 33 miles north east of Plymouth and 6 miles north west of Torquay.
The town has developed as the principle commercial and economic centre
for its hinterland and benefits from being situated close to the A380 and A38
dual carriageways which provide direct access to the southern end of the M5
motorway to the south of Exeter, and is highly accessible to Torquay via the
new A380.
In 2001, the estimated resident population for the urban area was 24,855
persons with a district population of 120,958 persons, rising to 155,295
persons (1994 estimate) within a 6 mile radius of the town centre.
Mosaic Consumer Groups
Symbols of success
Happy families
Suburban comfort
Ties of community
Blue collar enterprise
Grey perspectives
Urban Area (%)
5.73
13.64
21.63
27.71
14.49
12.32
GB (%)
10.53
11.46
16.06
16.33
11.56
6.71
Levels of car ownership and owner occupation within the urban area of
Newton Abbot are above the national average with some 46.7% of households
having one car, as compared to the GB average of 43.8% (2001 Census). At
the same date, 75.1% of houses were owner occupied as compared to the GB
average of 68.3%.

A383
A382
Broadlands
A381
Wolborough
Kingsteignton
5
Knowles Hill
A381
B3195
4
1
3
2
Newton Abbot
A380
A380
Rydon
Buckland
Newtake
1. Subject property
2. Homebase
3. Co-op/Carpetright
4. Tesco
5. B&Q - Jetty Marsh Road
SITUATION
The subject property is situated in a highly prominent location at the junction
of Greenhill Way and Newton Road, both forming the A383 which provides a
direct link to the town centre, 3 4 mile to the south, and to the A380 (Torquay
Road), 1 2 mile to the north west, providing access to a wider retail catchment.
The town’s proximity to the A380 which leads directly south to Torquay means
that the subject property’s catchment extends into Torquay’s conurbation and
this is evidenced by the fact that Matalan and Brantano do not have a store
in Torquay.
The general locality has developed as the catchment’s primary focal point
for retail warehousing, with the subject property providing the town’s main
scheme. Detailed below and identified on the adjacent plan is the town’s out
of town retail provision.
Homebase, Richleys and The Co-op
Approximately 200 metres north of the subject property is a cluster of retail
warehouse accommodation occupied by Homebase, Richleys and Plymco (The
Co-op). The units are of first generation construction and combined provide
circa 90,000 sq ft of retail accommodation.
Tesco Foodstore
Approximately 1 4 mile south of Kingsteignton Retail Park is a Tesco 24 hour
foodstore of approximately 70,000 sq ft.
B&Q Supercentre
Adjacent to Jetty Marsh Road, approximately 1 2 mile to the south of the subject
property is a B&Q Supercentre of circa 32,000 sq ft.
5

6
1. Halfords
2. Brantano
3. Matalan
4. Co-op/Carpetright
5. Homebase
6. Tesco
6
NEWTON ROAD
POTTERY ROAD
3
NEWTON ROAD
1
2
4
GREENHILL WAY
SITUATION
5
The retail park was developed in two phases in 2001 and 2002 and arranged as
a terrace of 3 units extending to 42,000 sq ft.
The principal details of the development are:
Steel portal frame with a minimum eaves height of 5.75m
Clad in a mixture of brickwork, micro rib panels and profile steel sheeting
Entrance features incorporating signage zones
Tarmacadem and concrete block pavier surfaced car park providing
173 spaces (1:243 sq ft)
Site area of 3 acres providing site cover of 32.16%

NEWTON ROAD
3
2
2
1
PLANNING AND TENURE
1
GREENHILL WAY
1. Halfords
2. Brantano
3. Matalan
Planning
Units 2 and 3 (Matalan and Brantano) benefit from an unrestricted Open A1
(non-food) consent with no restriction on sub-division or the installation of
mezzanine floorspace.
Unit 1 (Halfords) is to be used as an ‘Autocentre’ for the sale of motor vehicles,
parts and accessories, cycles, cycle parts and accessories along with servicing of
vehicles, the fitting of parts and accessories and complimentary and associated
activity or as agreed otherwise in writing with the Local Planning Authority.
There is no restriction on sub-division or the installation of
mezzanine floorspace.
Tenure
Freehold.
7

8
Accommodation and Tenancies
Unit Tenant
1
2
3
Halfords Ltd i
Brantano (UK) Ltd ii
Matalan Retail Ltd
Area
(sq ft)
8,000
8,000
26,000
Start
24/06/02
24/06/01
24/06/01
Term
15
25
25
Expiry
23/06/17
23/06/26
23/06/26
42,000
i 2007 RR currently outstanding
ii Rent increases to £134,000 p.a. on 24/06/2008 and to £138,000 p.a. on 24/06/2009
iii Area as stated in the lease
Covenant information
Tenant
Halfords Ltd
Brantano (UK) Ltd
Matalan Retail Ltd
Date
31/03/06
01/04/05
31/12/06
31/12/05
25/02/06
26/02/05
iii
iii
iii
Sales
Turnover
£681.70m
£616.70m
£108.33m
£112.82m
£1,059.50m
£1,102.90m
Pre-tax
Profit
£77.0
£88.0
£0.69m
£3.68m
£25.90m
£73.40m
Net Worth
(£56.30m)
£151.30m
£37.52m
£37.37m
£75.10m
£136.60m
Next RR
24/06/07
24/06/11
24/06/11
D&B
Rating
N3
5A1
5A1
Rent (p.a.)
SCHEDULES
£108,000
£130,000
£383,500
£621,500
Rent
(sq ft)
£13.50
£16.25
£14.75
ERV
(sq ft)
£15.50
£17.25
£15.00
ERV
(p.a.)
£124,000
£138,000
£390,000
£652,000

Kingsteignton Retail Park is the prime scheme in Newton Abbot which
combined with the scarcity of available space in the town means that
demand for the scheme is strong, and not surprisingly all of the current
occupiers trade well from the location. The strength of the location is
further enhanced by its accessibility to a wider catchment, with the A380
leading south to Torquay meaning the northern Torbay conurbation is also
served by Kingseignton.
Rental evidence in Devon
Town
Barnstaple
Bodmin
Exeter
Exeter
Hayle
Plymouth
Redruth
Torquay
Torquay
Torquay
Scheme
Barnstable Retail Park
Bodmin Retail Park
Exe Bridge Retail Park
Rydon Lane Retail Park
West Cornwall
Shopping Park
Marsh Mills Retail Park
Camborne Retail Park
Bridge Retail Park
Newton Road
Wren Retail Park
Occupier
Pets At Home
Halfords
Next
Land of Leather
Marks & Spencer
Land of Leather
Comet
Pets At Home
B&Q
Boots
Date
20/02/07
01/04/05
25/12/04
15/02/05
25/06/06
01/02/05
01/01/04
24/06/06
06/02/06
Transaction
Open Market Letting
Open Market Letting
Open Market Letting
Open Market Letting
Open Market Letting
Open Market Letting
Open Market Letting
Open Market Letting
Open Market Letting
Open Market Letting
RENTAL VALUE
We are of the opinion that if a unit was available in the open market then a
rent in excess of £20.00 per sq ft would be achievable.
We set out below a number of transactions which place the scheme’s ERV’s in
the context of rents within the region and which in our opinion demonstrate
the fact that we have adopted a conservative ERV.
Scheme Size
(sq ft)
50,000
55,000
55,000
TITLE PLAN
106,000 10,000
40,000
112,000
97,500
40,000
59,400
47,000
Unit Size
(sq ft)
10,000
6,000
15,000
20,000
10,000
10,000
8,000
59,400
12,260
Rent
(sq ft)
£19.00
£13.00
£30.00
£35.00
£28.00
£24.50
£14.25
£24.00
£22.00
£35.00
Comments
Bulky goods consent. One of two schemes in town.
Limited catchment. Bulky goods consent.
Prime open A1 scheme in town.
Prime bulky scheme in town.
Dominant scheme for catchment. Open A1 consent.
Prime bulky scheme in town.
Bulky goods consent.
Bulky goods. Third scheme in town.
Stand alone DIY unit.
Prime open A1 scheme in town.
9

10
PROPOSAL
VAT
We anticipate that the sale of the property will be treated as the transfer of a
going concern.
Proposal
We are instructed to seek offers in excess of £12,950,000 subject to contract
and exclusive of VAT. A purchase at this level represents the following yield
profile, taking purchaser’s costs at 5.7625%.
Initial Yield 4.54%
Running Yield
(post Halfords RR)
4.66%
Equivalent Yield 4.75%
Reversionary Yield 4.76%

INVESTMENT SUMMARY
PLYMOUTH
Plymouth is the primary urban centre in the south west of England
Urban area population of 244,000 persons rising to 435,000
persons within the primary catchment area
Strong location adjacent to a Tesco foodstore
A non-food unit extending to 48,221 sq ft occupied by Matalan
Freehold
Open A1 non-food planning consent
Offers are invited at a price in excess of £15,370,000, which taking
purchaser’s costs of 5.7625%, provides the following yield profile:
Initial Yield 4.75%
Equivalent Yield 4.75%
Reversionary Yield 4.75%
11

12
A30
A392
A39
A391
A390 A390
A30
A39
A38
A395
A38
A388
A30
A386
Plymouth
A38
A38
Newton Abbot
Exeter
A380
A385
Tesco
M5
A376
Torquay
Lidl
LOCATION
A30
Matalan
Matalan
Sat Nav: PL5 3TW
Magnet
A3
Plymouth is the regional capital of Devon and Cornwall and the largest conurbation
in the south west of England. The town lies 32 miles west of Torquay and 44 miles
south west of Exeter.
The City of Plymouth has developed as the south west region’s principal commercial
and economic centre being situated at the intersection of the A38, A388 and A379
roads with a A38 linking to the M5 motorway and national motorway network 40
miles to the north east.
In 2001, the estimated resident population for the urban area was 243,795 persons
rising to 294,014 persons (1994 estimate) within a 6 mile radius of the town centre.
Mosaic Consumer Groups
Symbols of success
Happy families
Suburban comfort
Ties of community
Blue collar enterprise
Grey perspectives
Urban Area (%)
2.80
13.73
15.04
20.22
14.38
5.28
GB (%)
10.53
11.46
16.06
16.33
11.56
Levels of car ownership within the urban area and the wider district area are above
the national average with 48.4% of households within the urban area having one
car, as compared to the GB average of 43.8% (2001 Census). Levels of owner
occupation within the urban area and district area are slightly below the national
average for the same date, with 64.1% of houses within the urban area being
owner occupied as compared to the GB average of 68.3%.
The ‘Claimant Count Unemployment Rate’ has been consistently below the national
average for the past 5 years and as at January 2007 stood at 1.9% as against the
national rate of 2.5%.
6.71

RETAIL WAREHOUSING IN PLYMOUTH
Retail warehousing in Plymouth is of predominantly cluster and standalone
development. Whilst there is a significant supply of retail warehousing in
Plymouth, the majority of the space is both secondary and restricted by
bulky goods planning consents. Detailed adjacent and identified on the
plan opposite is the city’s out of town retail provision.
Crownhill Road
Situated approximately 4 miles north west of the city centre is the subject
property adjacent to which is a Tesco foodstore and district centre, together
with nearby standalone Magnet and Lidl units.
Tavistock Road
To the north of the city centre and 1 mile east of the subject property is a B&Q
Warehouse (120,000 sq ft) situated on Tavistock Road (A386).
Marsh Mills Retail Park
Situated adjacent to The Parkway (A38), Marsh Mills is the dominant bulky
goods scheme for the city and currently extends to approximately 156,000 sq ft.
Tenants here include Homebase, Carpetright, DFS and Wickes.
Plymouth Road
Situated adjacent to Plymouth Road, east of Marsh Mills are two secondary
schemes being; Coypool Retail Park (115,000 sq ft) arranged as a cluster of retail
warehouse units; and Erill Retail Park (65,000 sq ft).
Laira Bridge
Comprising two dated units extending to circa 59,000 sq ft and currently
occupied by MFI and Carpetright, this scheme is located to the south of the city
centre to the south side of Laira Bridge Road.
Exeter Street
Adjacent to Exeter Street, to the south of the city centre, this two unit scheme
extends to around 79,000 sq ft, occupied by Wickes and a former Courts unit.
13

14
A374
1. Subject property
2. Tavistock Road
3. Marsh Mills Retail Park
4. Plymouth Road
5. Laira Bridge
6. Exeter Street
A38
TAMAR BRIDGE
Torpoint
A38
A3064
CROWNHILL ROAD
A374
1
A386
TAVISTOCK ROAD
EXETER STREET
6
2
5
A374
LAIRA BRIDGE
3
Plymouth
SITUATION
PLYMOUTH ROAD
4
The subject property is located on Transit Way which is accessible via
Crownhill Road, approximately 4 miles north west of Plymouth city centre.
Crownhill Road runs east west and links the A386 (Tavistock Road) to the A38
(The Parkway).
The immediate surrounding area has developed as a retail location with an
adjoining Tesco foodstore and district centre (110,000 sq ft), together with a
standalone Lidl unit and Magnet showroom and distribution unit. Immediately
to the front, and forming part of the subject site is an Arc carwash unit. The
wider area is predominantly residential.
Access/egress is provided via a roundabout on Transit Way which leads directly
to the subject property and the adjoining Tesco foodstore.

1. Matalan
2. Magnet
3. Lidl
4. Arc
5. Tesco
2
1
3
4
5
DESCRIPTION
The Matalan unit was let in 2001 and extends to 48,221 sq ft.
The principal details of the development are:
Steel portal frame under a pitched profile steel clad roof incorporating
profile clad parapet detail
Elevations clad in a mixture of profile steel cladding and profile sheeting
Separate concrete surfaced service area accessible via a
dedicated entrance
Tarmacadam surfaced car park providing 175 spaces (1:275 sq ft)
The Arc unit was developed in 2001 and comprises a modern car
wash facility
Site area of 3.53 acres providing site cover of 31.36%
15

16
PLANNING AND TENURE
Planning
Planning consent was granted on 27/01/00 for the ‘erection of 4,533 sq m
non-food retail unit, car wash, parking areas and supporting infrastructure’.
The Matalan unit therefore benefits from an Open A1 (non-food) planning
consent with no restriction on sub-division or the installation of mezzanine
floor space.
Tenure
Freehold.
The Arc car wash unit is owned by the tenant (Anduff Car Wash Ltd) with the
site as indicated on the title plan (page 15) being leased to the tenant.

Accommodation and Tenancies
Unit
1
2
Tenant
Matalan Retail Ltd i
Anduff Car Wash Ltd ii iii
Area
(sq ft)
48,221
48,221
Start
01/04/01
01/04/01
Term
25
25
Expiry
26/04/26
19/09/26
Next RR
27/04/06
20/09/06
i 2006 Rent Review outstanding and the current rent equates to £10.01 per sq ft.
ii 2006 Rent Review outstanding and the current rent is £17,000 per annum.
iii Rent is reviewed to the percentage increase of rent of the other non-food units (Matalan) on the estate.
Covenant information
Tenant
Matalan Retail Ltd
Anduff Car
Wash Ltd
Date
25/02/06
26/02/05
31/12/05
31/12/04
Sales
Turnover
£1,059.50m
£1,102.90m
£36.94m
£35.93m
Pre-tax
Profit
£25.90
£73.40
£6.97m
£5.91m
Net Worth
£75.10m
£136.60m
£34.42m
£25.09m
D&B
Rating
5A1
4A2
SCHEDULES
Rent (p.a.)
£747,000
£25,000
£772,000
Rent
(sq ft)
£15.50
ERV
(sq ft)
£15.50
ERV
(p.a.)
£747,000
£25,000
£772,000
17

18
We are of the opinion that the Matalan unit has a minimum ERV of £15.50
psf as at the date of the last rent review and that the current ERV would be
higher. We have, however, for the purposes of pricing, taken the assumed rent
review settlement to be equivalent to the current rent and ERV.
We set out below a number of transactions which in our view demonstrates
the fact that we have adopted a conservative ERV in respect of the
outstanding rent reviews, and that the current ERV should be in excess of the
assumed settlement.
Rental evidence in Devon
Town
Bridgwater
Exeter
Newton Abbot
Taunton
Torquay
Yeovil
Yeovil
Scheme
The Broadway
Moor Lane Development
Kingsteignton Retail Park
Riverside Retail Park
Regents Close
Babylon Hill
Lysander Road
Occupier
B&Q
Wickes
Matalan
B&Q
Focus
Matalan
B&Q
Date
24/06/05
01/08/07
24/06/06
14/12/03
10/12/02
24/06/05
25/03/05
Transaction
Rent Review
Rent Review
Rent Review
Rent Review
Rent Review
Rent Review
Rent Review
Scheme size
(sq ft)
RENTAL VALUE
46,500
31,550
42,876
47,365
32,546
58,632
41,525
Unit Size
(sq ft)
46,500
31,550
26,319
47,365
32,546
25,570
41,525
Rent
(sq ft)
£13.25
£15.00
£14.75
£16.50
£16.00
£15.45
£14.25
Comments
DIY unit in good location but small town.
New stand alone development. First 2 reviews
subject to a 3% p.a. compound uplifts.
Main scheme in town.
Prime DIY unit. Bulky goods consent.
Prominent stand alone unit . Historic settlement.
Small open A1 scheme
Located next to a foodstore, but significant competition
in town.

PROPOSAL
VAT
We anticipate that the sale of the property will be treated as the transfer of a
going concern.
Proposal
We are instructed to seek offers in excess of £15,370,000 subject to contract
and exclusive of VAT. A purchase at this level represents the following yield
profile, taking purchaser’s costs at 5.7625%:
Initial Yield 4.75%
Equivalent Yield 4.75%
Reversionary Yield 4.75%
19

FURTHER INFORMATION
Wilkinson Williams
26a Albermarle Street
London W1S 4HY
T: 020 7495 4321
F: 020 7495 5432
www.wilkinsonwilliams.co.uk
Drew Moore
T: 020 7317 3789
d.moore@wilkinsonwilliams.co.uk
Miles Marten
T: 020 7317 3777
m.marten@wilkinsonwilliams.co.uk